The U.S. Department of Labor (DOL) issued a final rule on Jan. 6 clarifying who is an independent contractor versus an employee under the Fair Labor Standards Act (FLSA). The rule is slated to take effect March 8, although its future in the Biden administration remains uncertain.
“The rule is significant because it creates greater clarity and certainty for all stakeholders,” said Steven Pockrass, an attorney with Ogletree Deakins in Indianapolis. The FLSA’s minimum wage and overtime provisions don’t apply to independent contractors, but court decisions as to who is an independent contractor under the FLSA have been inconsistent, he noted.
