INDEPENDENT CONTRACTORS AND FAIR LABOR STANDARDS ACT

The minimum wage and overtime pay requirements of the Fair Labor Standards Employment Act (FLSA) apply only to employees.  Courts distinguish between employees, who fall under the protections of the FLSA, and independent contractors, who do not.

On January 6, 2021, the Department of Labor (Department) announced a final rule clarifying the standard for employee versus independent contractor based on, inter alia, an economic reality analysis but on March 12, 2021, the Department issued a notice of proposed rulemaking proposing to withdraw this rule after receiving many comments that the rule "is inconsistent with the FLSA’s text and purpose, and would have a confusing and disruptive effect on workers and businesses alike due to its departure from longstanding judicial precedent." The withdrawal was effective immediately upon publication in the Federal Register on May 6, 2021. [86 FR 24303].

See Final Rule: Independent Contractor Status under the Fair Labor Standards Act