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Are Your “Independent Contractors” Entitled to Overtime?

Are Your “Independent Contractors” Entitled to Overtime?

27 July 2015
Attorneys

Closely Held Business World BLOG

The United States Department of Labor recently proclaimed that “most workers are employees under the FLSA.” On July 15, 2015, the DOL issued new guidance concerning the standard for determining whether an employee has been misclassified as independent contractor under the Fair Labor Standards Act’s (“FLSA”). The FLSA, which was originally enacted 1938, is a federal law that requires employers to pay all covered employees overtime for all hours worked in excess of 40 hours per week. Under the law, an individual is considered to be an “employee” of a person or entity that “suffer[s] or permit[s]” him or her to work. Although the FLSA’s broad definition of the term “employ” has been around for over 75 years, courts have interpreted the standard in a variety of ways. MORE