Department Of Labor Case Summary

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The U.S. Department of Labor (DOL) published advice regarding decreasing the misclassification of employees as independent contractors. The DOL said that most workers qualify as employees according to the terms set down in the Fair Labor Standards Act (FLSA) with stress placed on the fact the statute provides a very broad definition of employment.

The head of DOL’s Wage and Hour Division, David Wells, put together a 15-page administrator’s interpretation that showcased employees being improperly labeled as independent contactors resulting in a gray area where employers were able to skirt minimum wage and overtime pay requirements. It was also pointed out that the correct classification would have critical implications for legal protections

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