DOL Fact Sheet #13 lists factors that distinguish independent contractors from employees under the Fair Labor Standards Act (FLSA), including the degree of initiative and judgment exercised by the contractor, and whether the contractor has an independent business organization and operation.
The DOL presumes that an employee must be paid overtime unless employers clearly demonstrate that the employee meets the requirements of exempt status, which may be a heavy burden. If nonexempt, employees must be paid 1.5 times their “regular” rate of pay for hours worked past 40 hours per week.
As regulatory guidelines are, at times, clear as mud, it is imperative that employers carefully review the matter of exempt/non-exempt with their legal counsel.
Stuart J. Oberman, Esq.
Stuart J. Oberman is the founder and President of Oberman Law Firm. Mr. Oberman graduated from Urbana University and received his law degree from John Marshall Law School. Mr. Oberman has been practicing law for over 30 years, and before going into private practice, Mr. Oberman was in-house counsel for a Fortune 500 Company.
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