Tag:

Independent Contractors

Wait, am I an Independent Contractor?

Work looks very different for everybody, with remote work, gig economy jobs, such as rideshare drivers or freelance writers, and independent contractors. It can be hard to answer the simple question of “What do you do for work?” Misclassification of your employment status, such as being classified as an independent contractor when you are really an employee, can be detrimental for people, as it can prevent access to benefits and protections. These protections include the right to overtime pay, anti-discrimination policies, and worker’s compensation. In 2020 it was found that 10-30% of employers misclassified their workers. The most misclassified jobs range from construction workers, housekeeping cleaners, and security guards. Typically workers with less formal education are at risk for misclassification. A key solution to the issue of misclassification of workers is education on both the part of the employer and the worker.

DOL Proposes Rule That Could Recategorize Many Employees into Independent Contractors

The U.S. Department of Labor (“DOL”) has recently proposed a rule change that would revise its interpretation of “independent contractor” under the Fair Labor Standard Act (“FLSA”). According to DOL, which has the power to investigate worker complaints about misclassifications, this change is needed to promote certainty for stakeholders, reduce litigation, and encourage innovation in the economy. However, this proposed rule could also diminish employee rights because independent contractors have fewer protections under FLSA. This rule widens the scope of who can be considered an independent contractor. Thus, many workers classified as employees could be reclassified as independent contractors and lose protections under FLSA.