The U.S. Department of Labor (DOL) has released its long-anticipated Final Rule revising the standard for determining whether a worker is an employee or independent contractor under the Fair Labor Standards Act (FLSA). The Final Rule, published in the Federal Register on Jan. 10, 2024, is slated to take effect on March 11, 2024. Legal challenges are expected.
The Final Rule formally rescinds the independent contractor rule issued by the DOL during the Trump Administration a few years ago and provides a different interpretation of how the “economic realities” test should be applied.
While the DOL announced that “this rule is not intended to disrupt the businesses of independent contractors who are, as a matter of economic reality, in business for themselves,” business groups have argued the new rule only adds confusion and will result in workers improperly designated as employees when they instead are operating as independent contractors. The DOL’s change of course concerning the proper standard so quickly after a different standard was announced a few years ago, and following a change in administration, might reduce any deference courts will give to the new rule if it becomes effective.
The FLSA guarantees a minimum wage for all hours worked and overtime pay for any hours worked over 40 per week for all covered, non-exempt employees. Individuals who perform services for a company as an independent contractor are not afforded the FLSA’s minimum wage and overtime...
The Daily Telegraph removed a false report claiming President Recep Tayyip Erdoğan threatened to "invade Israel," issuing an apology after the story spread through Israeli media. Senior editor Pau...