DOL Proposes Making It Easier To Label Workers Contractors

Law360 (September 22, 2020, 9:16 AM EDT) -- The U.S. Department of Labor unveiled proposed regulations Tuesday that would make it easier for companies to classify workers as independent contractors, excluding them from workplace protections like overtime pay and sick leave.

The proposed rule offers employers a framework for determining whether workers are employees, who are subject to the Fair Labor Standards Act's minimum wage and overtime protections, or independent contractors, who are not.

It uses an "economic reality" test, which considers two core factors: whether a worker is in business for themselves, meaning they're an independent contractor, or is economically dependent on a putative employer for work, meaning...

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