U.S. Department of Labor finalizes rule creating a new “reality” for classifying independent contractors
As we previously reported, this past September the U.S. Department of Labor (DOL) proposed a new rule that would create a uniform approach to the way companies classify workers as independent contractors or employees under the Fair Labor Standards Act (FLSA). More specifically, in the proposed rule, the DOL adopted the “economic reality” test, which uses five main factors to determine whether workers are in business for themselves (as an independent contractor), or whether…