DOL Says Online Service Providers are Contractors

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Ever wonder who employs the plumber you found online and booked via an online platform? Yesterday, the DOL answered this question: the plumber is an independent contractor and the virtual marketplace company that operates the online platform is not the employer.

The DOL opinion is very fact specific.  However, as a general matter, it confirms that when analyzing whether an individual is an employee vs. a contractor, the DOL continues to use the FLSA six factor test to determine economic dependence: (i) Control; (ii) Permanency of Relation; (iii) Investment in Facilities, Equipment or Helpers; (iv) Skill, Initiative, Judgment or Foresight Required; (v) Opportunity for Profit and Loss; and (vi) Integrality.

The Opinion is here: DOL Opinion

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