Overtime Changes & Employee Classification Guidance

On June 30, 2015, the Department of Labor (DOL) announced a proposed rule that would extend overtime protections to nearly 5 million white collar workers within the first year of its implementation. The rule would raise the salary threshold from $23,660 to $50,440 for workers to automatically qualify for time-and-a-half overtime wages.

The new rule would apply to all private employers that are subject to federal wage and hour laws. A public comment period began July 6, 2015, with the final version of the rule likely not going into effect until sometime in 2016.
Read more about the overtime changes from the DOL...

On July 15, 2015, the DOL's Wage and Hour Division issued guidance to Fair Labor Standards Act's definition of "employ" in regards to the determination of whether workers are employees or independent contractors under the law.  In order to make the determination whether a worker is an employee or an independent contractor under the FLSA, courts use the multi-factorial “economic realities” test, which focuses on whether the worker is economically dependent on the employer or in business for him or herself. A worker who is economically dependent on an employer is suffered or permitted to work by the employer. Thus, applying the economic realities test in view of the expansive definition of “employ” under the Act, most workers are employees under the FLSA.
Read more employee classification from the DOL...

 

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