Contractor or Employee Under FLSA
Michael A. Pavlick
K&L Gates LLP
You will Learn:
- Why the distinction between employee and independent contractor is important.
- How to make proper classification decisions about the status of workers.
- How the definition of employee under the FLSA is broader than most.
- How to apply the Economic Realities test used by the courts.
- How to identify the important factors considered by the courts in making classification determinations.
According to the Department of Labor, 80% of employees are not in compliance with the Fair Labor Standards Act (“FLSA”) which, at its core, requires the payment of a minimum wage and overtime for covered employees. Not surprisingly, wage and hour litigation has exploded in recent years, with federal court filings having increased by 300% since 2000. The top 10 settlements alone in 2012 totaled nearly $300 million. Of central importance to avoiding litigation is the proper classification of workers: is the worker an employee subject to the FLSA and, if so, is there an exemption which excepts that employee from overtime and minimum wage obligations? This 10-minute webinar examines the preliminary question of whether a worker is an employee covered by the FLSA, or is an independent contractor to whom overtime and a minimum wage need not be paid. If the worker is an employee, the focus shifts to determining whether the employee might be exempt from the FLSA.
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