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Larry Carbo, Shareholder
Diana Perez Gomez, Shareholder
Julie Offerman, Shareholder
Kellen Scott, Shareholder
Leslie Tan, Senior Counsel
Chamberlain Hrdlicka Blawgs
In an article published in Bloomberg Law on November 4, 2020, Chamberlain Hrdlicka Atlanta-based Shareholder Annette Idalski, Counsel Kaitlin Lammers and Associate Brian Smith discuss the Department of Labor’s recently proposed rule that clarifies when employers can classify workers as independent contractors and explains how the DOL lowered the bar for businesses to classify independent contractors.
“The Department of Labor’s Sept. 22 proposed rule offering clarification on when a worker is deemed an independent contractor under the Fair Labor Standards Act is intended to replace all prior administrative rulings, interpretations, practices, or enforcement policies relating to that classification under the FLSA that are inconsistent or in conflict with the proposed rule,” explain Idalski, Lammers and Smith.
The authors further explain that an analysis of the rule suggests that it will broaden the classification of workers as independent contractors in a manner favorable to employers. If the proposed rule is enacted as is, it will focus on the “core” factors in the proposed rule that will allow businesses to take well-defined steps to ensure a worker is properly classified as an independent contractor.
The proposed rule provides a multi-factor test for independent contractor status of two “core” factors and three “guidepost” factors to determine whether a worker is economically independent and in business for himself or herself, or if they are economically dependent on a putative employer for work.
To learn more, read the full article here.