By Jon Steingart (January 6, 2021, 8:51 AM EST) -- The Department of Labor rolled out a multifactor test Wednesday for determining whether workers are independent contractors, meaning the business they perform work for doesn't have to pay minimum wage or overtime that the Fair Labor Standards Act requires for employees.
The rule is designed to suss out whether a worker is economically dependent on another business and therefore is its employee or is more like a small operator in business for oneself.
To answer that question, the test evaluates the "economic realities" of the working relationship, Administrator Cheryl Stanton of the Wage and Hour Division told reporters Wednesday.
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