Continuing the trend of expanding Fair Labor Standards Act (FLSA) overtime rules outside the traditional realm of hourly manufacturing or retail workers, two recent events show that employers should be aware that exemption and independent contractor issues are on the forefront of labor scrutiny.
A stripper, an intern, and a minor league baseball player walk into a bar . . . Where is this joke going? To court of course; this is a family-friendly legal blog!
As we have discussed in the past, to be eligible for one of the “white collar” exemptions (executive, administrative, or professional) or as a highly compensated employee (HCE), Section 541.600 of the FLSA regulations requires employers to compensate employees on a salary basis (currently $455 for white collar exemptions, but likely rising to around $970, and from $100,000 to $122,148 for HCEs), exclusive of board, lodging or other facilities.
Yesterday, the U.S. Department of Labor (DOL) issued an Administrator’s Interpretation that provides some important new guidance on the standard for classifying workers—as employees or independent contractors—under the Fair Labor Standards Act (FLSA).
DOL Guidance On Independent Contractor Classification Provides Another Arrow in the Department’s Enforcement Quiver
The Administrator of the US Department of Labor’s (DOL) Wage & Hour Division, David Weil, has issued a formal Interpretation on the subject of “The Application of the Fair Labor Standards Act’s ‘Suffer or Permit’ Standard in the Identification of Employees Who Are Misclassified as Independent Contractors,” the DOL’s first on the issue since President Obama took office in 2008. Administrator’s Interpretation No. 2015-1, July 15, 2015.
Amidst the ongoing battle for how the sharing economy should define its workers, the Department of Labor stepped in yesterday with their own “guidance” on the issue.
The all-time best The Far Side cartoon (based on an unscientific survey, sample size of me) is the one with two deer standing in the forest, one with a red circular target imprinted on its chest. The other deer says, “Bummer of a birthmark, Hal.”
The DOL continues to deliver on the promise of its busy summer. This morning, Department of Labor Wage and Hour Division (WHD) Administrator Dr. David Weil announced a new, 15-page Administrator’s Interpretation in a DOL blog post that stressed the FLSA’s expansive definition of employment and reinforced the WHD’s position that most workers qualify as employees under the FLSA.
On July 15, 2015, DOL’s Wage & Hour Division issued Administrator’s Interpretation No. 2015-01, titled, “ The Application of the Fair Labor Standards Act’s ‘Suffer or Permit’ Standard in the Identification of Employees Who Are Misclassified as Independent Contractors.”