New DOL guidance cracks down on employers’ use of independent contractors — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

New DOL guidance cracks down on employers’ use of independent contractors

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Continuing its attack on misclassification of employees, the U.S. Labor Department released new guidance on July 15 that aims to clarify how businesses should distinguish between employees and independent contractors.

The 15-page interpretive guidance isn’t a change in federal policy, which would require several more regulatory steps. But courts often use such DOL interpretations when deciding lawsuits.

The bottom line: The guidance stresses that the Fair Labor Standards Act (FLSA) definition of “employment” is very broad, and that employers are probably violating the law if they’re treating workers who are integral to the business as independent contractors.

Employers are supposed to consider several “economic realities” when classifying workers, including how much control the employer has over the worker’s tasks and schedule. The guidance warns that the factors, “should be considered in totality … the ‘control’ factor shou...(register to read more)

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