Labor & Employment Law Updates
A former longtime Taco Bell recruiter sued the company under the Employee Retirement Income Security Act claiming he was misclassified as an independent contractor and should have been a full-time employee eligible for employee benefits such as health insurance, pension, paid time off, and bonuses.
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On May 5, 2021, the U.S. Department of Labor issued a Final Rule withdrawing the DOL’s January 7, 2021 Final Rule regarding the classification of independent contractors under the Fair Labor Standards Act.
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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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