RPJ Partner Deena Merlen Discusses Developments In Worker Classification Under The FLSA

The classification of a worker as an employee or an independent contractor can make a big difference in terms of the worker's rights and the employer's obligations. For example, under the Fair Labor Standards Act (the "FLSA"), covered employers must pay their non-exempt employees no less than the then-current federal minimum wage, and they must pay them at least one and one-half times the employees' regular rate of pay for each hour worked in excess of 40 hours in a workweek. In contrast, the FLSA provides no such guarantees to independent contractors performing services.

In January of 2021, the U.S. Department of Labor (the "Department") published a final rule titled "Independent Contractor Status Under the Fair Labor Standards Act" (the "2021 IC Rule"), which was to take effect as of March 8, 2021. The 2021 IC Rule provided guidance on the classification of workers as either independent contractors or employees under FLSA and it materially changed the