Proposed Federal Rule Would Define Employee vs. Independent Contractor

Sep 24, 2020 at 01:23 PM CST
The U.S. Department of Labor announced a proposed rule that aims to clarify who’s an employee and who’s an independent contractor under the Fair Labor Standards Act, which could be good news for some trucking companies using owner-operators. The proposed rule adopts an “economic reality” test to determine a worker’s status as an FLSA employee or an independent contractor. The test considers whether a worker is in business for himself or herself (independent contractor) or is economically dependent on a putative employer for work (employee).

Sep 24, 2020 at 01:23 PM CST

The U.S. Department of Labor announced a proposed rule that aims to clarify who’s an employee and who’s an independent contractor under the Fair Labor Standards Act, which could be good news for some trucking companies using owner-operators. The proposed rule adopts an “economic reality” test to determine a worker’s status as an FLSA employee or an independent contractor. The test considers whether a worker is in business for himself or herself (independent contractor) or is economically dependent on a putative employer for work (employee).