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DOL Withdraws Independent Contractor and Joint Employer Guidance
Morgan Lewis [Guidance Overview] June 9, 2017 "The rescinded [Administrator's Interpretations (AIs)] -- a 2015 AI addressing the tests for employee/independent contractor classification and a 2016 AI addressing joint employment liability -- deliberately pushed the envelope in favor of expanding liability under the [FLSA]. The DOL's independent contractor AI, for example, concluded that 'most workers are employees' and advocated for a revised 'economic realities test' for employee/contractor status that tipped the scales decidedly in favor of employee status. Later in 2016, the DOL similarly articulated a broad view of joint employer coverage -- even in situations where little or no traditional indicia of control exists between two entities. Both AIs were withdrawn, effective immediately upon the DOL's June 7 announcement." |
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