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ARTICLE · 29 SEPTEMBER 2020

DOL Proposing To Make It Easier To Classify Workers As Independent Contractors

Ensuring the proper classification of workers is a concern for many employers.

United StatesEmployment and HR

Ensuring the proper classification of workers is a concern for many employers. Soon, it may become easier for employers to classify workers as independent contractors, thereby excluding more workers from overtime pay under the Fair Labor Standards Act (FLSA). Independent contractors also are not entitled to a minimum wage, family and medical leave, and, under many state laws, unemployment insurance. This issue has become more significant, based on the "gig" economy.

On Tuesday, September 22, 2020, the Department of Labor (DOL) proposed new regulations that make it easier for employers to classify workers as independent contractors. The DOL's notice provides historical context as to prior rulings and regulations on the determination of a worker's status as an employee or independent contractor. The DOL notes that technological and social changes have revealed how the DOL and court's emphasis on investment and permanence have created misleading results. To remedy

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