The Weekly Guide to Employment Law Developments

The Rocky Mountain Employer

Labor & Employment Law Updates

Posts tagged economic reality test
EMPLOYERS MAY FIND COMFORT IN THE ECONOMIC REALITY TEST FOR INDEPENDENT CONTRACTORS

The U.S. Department of Labor (“DOL”) Administrator’s Interpretation No. 2015-1 (“AI 2015-1”) referenced the use of the Economic Reality Test for companies to determine whether workers were independent contractors or employees.  President Obama’s DOL further stated that most workers were employees under the Fair Labor Standards Act (“FLSA”).  Earlier this month, President Trump’s DOL withdrew AI 2015-1 and on the DOL website, states that removal of AI 2015-1 “does not change the legal responsibilities of employers under the Fair Labor Standards Act . . ..”

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