A Win for Employers: DOL Withdraws Guidance on Independent Contractors and Joint Employment

This morning, the Department of Labor withdrew its guidance on independent contractors and joint employment, a move business groups expect will result in fewer individuals covered by the Fair Labor Standards Act.

The guidance was issued under the Obama administration and set forth an economic realities test intended to resolve significant differences in opinions issued by courts across the country and sometimes even within the same jurisdiction.

While the DOL announced that the withdrawal “does not change the legal responsibilities of employers,” many courts most likely will revert to their earlier interpretations.

If you’re classified as an independent contractor or are working for more than one employer, contact our office to speak with a knowledgeable attorney.