The U.S. Department of Labor has issued a new proposed analysis test for identifying workers as employees or independent contractors under the Fair Labor Standards Act. The modified analysis aims to increase the number of U.S. workers covered by employment benefits and protections.
The new analysis would add emphasis to:
- The permanency of the relationship
- The workers’ investment in equipment and materials and the skill level required to do the task
- The extent to which the service rendered is an integral part of the employer’s business
The proposed analysis will be published in the Federal Register on October 13th. Employers may comment on the proposal for 45 days after publication. Concerned employers should try to comment on the new provisions before November 27th.
Click HERE to read the unpublished proposed rule.
