Employee Vs. Independent Contractor Developments

The classification, and more specifically the alleged misclassification, of independent contractors continues to dominate the headlines. The following is a summary of three significant and ongoing developments in this area under both federal and California law.

DOL Seeks to Clarify Independent Contractor Test Under Federal Law

The U.S. Department of Labor (DOL) issued a proposed rule on September 22, 2020, clarifying when a worker should be considered an employee under the Fair Labor Standards Act (FLSA), or an independent contractor. The proposed rule largely incorporates the long-standing "economic reality" test factors that were historically developed by the courts, but emphasizes the importance of certain factors over others.