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Independent Contractor Final Rule issued by the department on issued on Jan. 7, 2021, for several reasons. They include the following: The rule adopted a new “economic reality” test to determine whether a worker is an employee or an independent contractor under the FLSA. Courts and the department have not used the new economic reality test, and FLSA text or longstanding case law does not support the test. The rule would narrow or minimize other factors considered by courts traditionally; making the economic test less likely to establish that a worker is an employee under the FLSA. Overtime premium pay Among its provisions, the FLSA requires covered employers to pay employees at least the federal minimum wage for every hour worked and overtime premium pay of at least one and one-half times their regular rate of pay for every hour worked over 40 in a workweek. An independent contractor has no FLSA protections.

New yorkUnited statesDistrict of columbiaJonl gelmanHour division principal deputy administrator jessica loomanUs department of labor onUs district courtHour divisionFair labor standardsProposed rulemakingIndependent contractor final ruleFair labor standards actFederal registerSouthern districtJoint employer ruleAdministrative procedures