Last month, the U.S. Department of Labor published a proposed rule to modify the federal guidelines for determining how to properly classify an individual as an independent contractor or employee under the Fair Labor Standards Act. Under current guidance published on January 7, 2021, employers are directed to consider the following five factors to determine independent contractor status:
- The nature and degree of control by the employer over the individual’s work;
- The individual’s opportunity for profit or loss;
- The degree of permanency in the working relationship;
- Whether the work performed is an integral part of the employer’s business; and
- Whether specialized training or skill is required to perform the work.