Recent Labor Department Actions Target Independent Contractor Misclassification, Overtime

On July 15, 2015, the Department of Labor issued Administrator’s Interpretation No. 2015-1 to address misclassification of independent contractors under the wage-and-hour requirements of the Fair Labor Standards Act. Also, on June 30, 2015, the DOL issued a proposed regulation amending the exemption tests for “white collar” employees under the FLSA. In this article, SRZ partners Mark E. Brossman, Ronald E. Richman and Holly H. Weiss, special counsel Scott A. Gold and former SRZ attorney Joseph Gallagher discuss these actions, which highlight the need for employers to re-examine their classifications of individuals as contractors or as exempt from overtime pay requirements.