august 2015 legal affairs update
Post on 16-Aug-2015
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DOL Issues Guidance On Independent ContractorClassification; DOJ Shifts Position on WebAccess By:Lawrence P. Postol, Vice President For Legislative AffairsLpostol@seyfarth.comDL !ss"es #"idance n !ndependent $ontractor $lassification !nterpreting FL%A Broadly to$over &ost 'or(ers as )mployees n *"ly +, ,-./, the 0.%. Department of La1or2s 'age and 3o"r Division 4'3D5 iss"edits first Administrator2s !nterpretation 4A!5 on the Fair La1or %tandards Act in more than a year.As the Administrator, Dr. David 'eil, had forecast in a speech last month, today2s A! disc"ssesthe important topic of independent contractor and employee classification "nder the FL%A.6heA! is an "napologetic effort to restrict the "se of independent contractors:78&9ost wor(ers,: theAdministrator concl"des, 7are employees "nder the FL%A2s 1road definitions.:As 1ac(gro"nd, an A! is an agency interpretation, and is not s"1;ect to the notice andcomment process reetail,3ospitality, Financial %ervices, and 3ealthcare.56he e=tent to which co"rts sho"ld defer to theA!, if at all, is li(ely to 1e the s"1;ect of de1ate and litigation.!t is clear, however, that the A!does not have the force of a reg"lation properly iss"ed after notice and comment.6he A! doesnot anno"nce a new test for employee, as opposed to independent contractor, stat"s. >ather, itgraftsthem"lti?factor7economicrealities:test that co"rtscommonly"seontoane=tremelye=pansive reading of the FL%A2s 7s"ffer or permit to wor(: definition of 7employ.:!n so doing,the Administrator2s analysis and e=amples f"rther '3D2s recent efforts to investigate the "se of./.@A.@.v.BBindependent contractors. $om1ined, '3D2s efforts indicate a significant hostility towards the"se of independent contractors.6heres"lt that theAdministrator see(sistoseverelyrestrict the"seof independentcontractorsandtore&Board, and a partner in the 'ashington, D.$. office of %eyfarth %haw LLP.!f yo"have any
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