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ARTICLE · 11 JANUARY 2021

DOL Publishes Final Rule For Determining Who Is An Independent Contractor

Ogletree, Deakins, Nash, Smoak & Stewart
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On January 7, 2021, the U.S. Department of Labor (DOL) published a final rule in the Federal Register that clarifies how to determine who is an independent contractor and who is an employee...

United StatesEmployment and HR

On January 7, 2021, the U.S. Department of Labor (DOL) published a final rule in the Federal Register that clarifies how to determine who is an independent contractor and who is an employee for purposes of the Fair Labor Standards Act (FLSA).

This is an important issue because independent contractors are not subject to the FLSA's minimum wage and overtime requirements. Unfortunately, court decisions and past DOL determinations as to who is or is not an independent contractor under the FLSA have often been inconsistent. Opportunities to be in business for oneself have increased dramatically in the gig economy, which has further fueled the need for a straightforward test that can be meaningfully applied in the modern workplace.

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