On Tue, Jan. 9, the U.S. Department of Labor announced a final rule detailing when workers should be considered an employee versus an independent contractor under the Fair Labor Standards Act. The rule’s goal is to combat misclassification of employees. Improper classification can impact workers’ rights to minimum wage, overtime pay, and can facilitate wage theft. All this can result in illegal undercutting of law-abiding companies that do not misclassify. Acting Secretary of Labor Julie Su said that misclassification is “a serious issue that deprives workers of basic rights and protections,” and that the new rule will help protect workers. Six specific factors in making the determination of an employee’s correct status are spelled out in the rule to guide employers.
Read the full story by U.S. Department of Labor News, published January 9, 2024, here: https://www.dol.gov/newsroom/releases/whd/whd20240109-1
