Department of Labor Publishes New Guidance.

On January 9, 2023, the Department of Labor published new guidance on how to classify workers as either employees or independent contractors under the Fair Labor Standards Act. Classification now requires application of a multi-factor test, with no one factor weighted over another. Those factors consider:

1.  the worker’s opportunity for profit or loss;

2.  investments by the worker and the potential employer;

3.  the degree of permanence of the work relationship;

4.  the nature and degree of control exercised by the potential employer vs the worker;

5.  the extent to which the work performed is an integral part of the potential employer’s business; and

6.  the worker’s skill and initiative.

The Department may also consider additional factors if they are relevant to the overall question of economic dependence. This newest guidance returns the standard to what it was prior to a change implemented by the DOL under the Trump administration. 

If you have any questions, please do not hesitate to contact anyone in our Employment Law group at 402-492-9200 or Bob Lepp at boblepp@mgwl.com or Colin Bernard at colinbernard@mgwl.com.