Breaking News---DOL Opines that Most Workers are Employees, not Independent Contractors
Today, and hot on the heels of the U.S. Department of Labor's (DOL's) proposed revisions to the overtime regulations, DOL Wage and Hour Administrator Dr. David Weil has issued a new Administrator's Interpretation (No. 2015-1) which concludes that, "most workers are employees under the FLSA's broad definition." Contending, among other things, that the misclassification of employees as independent contractors results in lower revenues for government, the DOL Interpretation strongly embraces the "economic realities" test, which focuses on whether the worker is economically dependent on the employer or in business for himself. Noting that the multi-factor test should not be applied mechanically or as a checklist, and that no one factor is outcome determinative, the DOL identified and explained the factors as follows: Is the worker an integral part of the employer's business? A true independent contractor's work is unlikely to be ...