Department Rule Converting Independent Contractors to Employees

In July 2015, the Department of Labor issued an Administrator’s Interpretation that de facto converted independent contractors into employees for purposes of minimum wage and overtime requirements. This rule has been called “a very aggressive stance against the use of independent contractor status in the workplace.” It constrains this status by interpreting each of six factors narrowly. The issuance of the guidance document was widely perceived as a shot across the bow to employers signaling that the agency would more aggressively police the use of independent contractor status. The Department of Labor has not submitted this rule to Congress as required by the CRA, and it therefore not in effect, should not receive deference from courts, and remains vulnerable to congressional disapproval.

Rule here: https://www.dol.gov/whd/workers/Misclassification/AI-2015_1.htm#2

Criticism of the rule: http://www.vtzlawblog.com/2015/07/articles/wage-and-hour-issues/employee-wages/department-of-labor-issues-aggressive-memo-going-after-misclassified-independent-contractors-administrators-interpretation-no-20151/


More: https://www.law360.com/articles/679455/attorneys-react-to-dol-misclassification-guidance