Employee Compensation

On Jan. 9, the United States Department of Labor (DOL) released details regarding its final rule on the classification of independent contractors under the Fair Labor Standards Act (FLSA), and on Jan. 10, the DOL published the rule itself, available here. DOL indicated that the intent of the new regulation was to bring the regulatory framework in line with the FLSA itself, as well as judicial precedent interpreting the law.

Determining whether an individual should be classified as an independent contractor or an employee is relatively complex, and the proper analysis has been the subject of a decades-long debate by courts and administrative agencies, with various standards utilized and evolving over time.

Just days before Labor Day, the U.S. Department of Labor (“DOL”) unveiled its Notice of Proposed Rulemaking (“NPRM”), aimed at revising the Fair Labor Standards Act’s overtime exemptions for executive, administrative, and professional employees. While the proposal—the cornerstone of which is a minimum salary increase to slightly more than $55,000 per year (up from $35,568)—is more measured than many anticipated, it could still have a massive impact across industries and commands employers’ attention.