Recording | Employee or Independent Contractor? Classification Under the FLSA (March 27)

The U.S. Department of Labor published a final rule on January 9, 2024, defining "independent contractor" under the Fair Labor Standards Act (FLSA). The final rule went into effect on March 11, 2024. The final rule rescinds a 2021 rule defining the same term, and in its place, adopts a six-factor test focused on the "economic reality" of the relationship between a potential employer and a worker. The test asks whether, as a matter of economic realities, the worker depends on the potential employer for continued employment or is operating an independent business.

In this legal update, the panel explored and explained the DOL's six-factor test, and discussed:

• Implications on businesses who utilize contractors
• How it intersects with FDIC Section 19
• Predictions on the future of litigation on contractor classifications

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