On September 22, 2020, the U.S. Department of Labor (DOL) proposed a rule to clarify the definition of employee under the Fair Labor Standards Act (FLSA) as compared to independent contractors. More details regarding the proposed rule can be found here.
In response to the proposed rule, the DOL received about 1,800 total comments from various individuals and organizations. Supporters of the rule include the U.S. Chamber of Commerce and the National Association of Manufacturers. The American Federation of Labor & Congress of Industrial Organizations (AFL-CIO) and the International Brotherhood of Teamsters are among those organizations in opposition to the rule.
The DOL has determined that the lack of regulatory guidance on the definition of employee under the FLSA supports the need for the proposed rule to be finalized and implemented promptly. Accordingly, the DOL is slated to issue a final rule by the end of this year.
In the coming weeks, we will continue to monitor activity related to this rule and provide updated guidance as it becomes available. In the meantime, if you have questions about the proposed rule, please contact Matthew R. Plain or Rita E. Nerney at 401.273.7171.
Barton Gilman’s employment law team provides comprehensive legal guidance to a wide variety of employers on all aspects of the employment cycle—from hiring through separation—including personnel policies and handbooks, non-compete agreements, and representation before state and federal courts and agencies. To learn more, please visit www.bglaw.com/services/labor-employment/.