Worker Classification for Fair Labor Standards Act (FLSA)

The U.S. Department of Labor gave notice of a proposed rule rescinding a 2024 rule and replacing it with another rule. The DOL rule applies for purposes of minimum wage and overtime rules. The proposed rule adopts an “economic reality test” examining whether a worker is in business for him- or herself (an independent contractor) or is economically dependent on a potential employer for work (an employee). There are other “core factors” that can come into play. Comments on the proposed rule are being accepted through April 28, 2026, so a final rule could be different. #IdeaoftheDay

Check out the new blog post today!