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ARTICLE · 20 JULY 2015

DOL Issues Aggressive Interpretation Of Independent Contractor Classification

The DOL's new interpretation of the FLSA test for classification purports to eliminate independent contractor status for most workers and broadly expand the FLSA's coverage.

United StatesEmployment and HR

The DOL's new interpretation of the FLSA test for classification purports to eliminate independent contractor status for most workers and broadly expand the FLSA's coverage.

On July 15, David Weil, the Administrator for the US Department of Labor's (DOL's) Wage and Hour Division, issued an Administrator's Interpretation concerning the Fair Labor Standards Act (FLSA) and specifically addressing the test to determine if an individual is an employee or an independent contractor. The new interpretation—which the DOL declined to submit for comment by the public (as it does with most proposed regulations)—concludes that "most workers are employees under the FLSA's broad definitions."

Purportedly spurred by the receipt of "numerous complaints from workers alleging misclassification" and the history of "successful enforcement actions against employers who misclassify workers," the interpretation ignores decades of legal precedent concerning the classification of employees

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