New DOL Guidance on Independent Contractors

As part of the DOL’s efforts to combat misclassification of workers, the DOL recently issued Administrator’s Interpretation 2015-1. The Interpretation analyzes in detail the factors in the “economic realities test” currently applied to whether a worker is an employee or a contractor with the goal “not simply to tally which factors are met, but to determine whether the worker is economically dependent on the employer (and thus its employee) or is really in business for him or herself (and thus its independent contractor).  The Interpretation is a must read for any business that uses frequently uses contractors to provide services.

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