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On June 7, 2017, Labor Secretary Alexander Acosta announced that the Department of Labor was withdrawing its 2015 and 2016 informal guidance on indepe...

Department of Labor Loosens Its Stance on Misclassification of Employees as Independent Contractors. But is Anything Changing?

July 17, 2017

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Department of Labor Loosens Its Stance on Misclassification of Employees as Independent Contractors. But is Anything Changing?

July 17, 2017

On June 7, 2017, Labor Secretary Alexander Acosta announced that the Department of Labor was withdrawing its 2015 and 2016 informal guidance on independent contractors and joint employment. While the announcement represents some welcome news for employers, the announcement makes clear that employers' responsibilities under the Fair Labor Standards Act are not changing. Thus, employers should still be cautious when seeking to retain a worker as an independent contractor as opposed to an employee.

 

In addition, while many expect that the DOL will be more employer-friendly under the new administration than the previous one, several resources and fact sheets from the Obama administration remain on the Department's website. If you're interested in learning more on this topic and what your obligations as an employer might be, visit the DOL's misclassification website by clicking here

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