august 2015 legal affairs update

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DOL Issues Guidance On Independent Contractor Classification; DOJ Shifts Position on Web Access By: Lawrence P. Postol, Vice President For Legislative Affairs [email protected] DOL Issues Guidance On Independent Contractor Classification Interpreting FLSA Broadly to Cover Most Workers as Employees On July 8, 2015, the U.S. Department of Labor’s Wage and Hour Division (WHD) issued its first Administrator’s Interpretation (AI) on the Fair Labor Standards Act in more than a year. As the Administrator, Dr. David Weil, had forecast in a speech last month, today’s AI discusses the important topic of independent contractor and employee classification under the FLSA. The AI is an unapologetic effort to restrict the use of independent contractors: “[M]ost workers,” the Administrator concludes, “are employees under the FLSA’s broad definitions.” As background, an AI is an agency interpretation, and is not subject to the notice and comment process required for 15149141v.33

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In the August Legal Report, Larry Postol, VP of Legislative Affairs, addresses DOL guidance on independent contractor classification and the DOJ position on web access.

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DOL Issues Guidance On Independent ContractorClassification; DOJ Shifts Position on WebAccess By:Lawrence P. Postol, Vice President For Legislative [email protected] !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./.@[email protected] 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