TMH Solutions
December 7, 2022
February Monthly Meeting: Good to Great at COSI- February 2, 2023
January 9, 2023
The U.S. Department of Labor is proposing to modify Wage and Hour Division regulations to revise its analysis for determining employee or independent contractor classification under the Fair Labor Standards Act (FLSA or Act) to be more consistent with judicial precedent and the Act’s text and purpose.
NAWBO National and NAWBO Columbus recently requested feedback on proposed rules and prepared comments that were shared with the DOL.
Specifically, the proposed rule would do the following:
- Align the department’s approach with the courts’ FLSA interpretation and the economic reality test.
- Restore the multifactor, totality-of-the-circumstances analysis to determine whether a worker is an employee or an independent contractor under the FLSA.
- Ensure that all factors are analyzed without assigning a predetermined weight to a particular factor or set of factors.
- Revert to the longstanding interpretation of the economic reality factors. These factors include the investment, control, and opportunity for profit or loss factors. The integral factor, which considers whether the work is integral to the employer’s business, is also included.
- Assist with the proper classification of employees and independent contractors under the FLSA.
- Rescind the 2021 Independent Contractor Rule.
