New Interpretation of FLSA and “Employee” Definitions

The Department of Labor’s (DOL) 2015 interpretation of the Fair Labor Standards Act (FLSA) is being questioned by Secretary of Labor Alexander Acosta, who has issued a “withdrawal” of the interpretation, “calling it ‘informal guidance'”. However, the DOL has stated that the “removal of the administrator interpretations does not change the legal responsibilities of employers under the [FLSA]”, even though its “pursuit of employers who misclassify employees as independent contractors has been rolled back”. Employers should closely follow potential changes to the FLSA to determine if changes to current policies will be necessary.

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