• What Independent Contractors and Dodo Birds May Soon Have In Common
  • July 23, 2015 | Authors: Jennifer L. Anderson; Mary Margaret (Spell) LeBato; B. Trevor Wilson
  • Law Firms: Jones Walker LLP - Baton Rouge Office ; Jones Walker LLP - New Orleans Office ; Jones Walker LLP - Baton Rouge Office
  • Yesterday, the Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) issued its first Administrator Interpretation of 2015 on the heels of the proposed white collar exemption revisions that would greatly expand the universe of overtime-eligible employees, as addressed in our Client Alert dated July 1, 2015. Aimed at rectifying what the WHD views as an increasing and widespread misclassification of employees as independent contractors, the interpretation proclaims that “most workers are employees under the FLSA.” Conceding that independent contractor relationships can be advantageous for workers and businesses, the WHD cites the loss of payroll tax revenues to the government and loss of workplace protections and benefits for workers, such as overtime, minimum wage, and insurance, as the need for additional guidance regarding who is an employee under the Fair Labor Standards Act (FLSA).