Department of Labor Clarifies Test for Classifying Employees and Independent Contractors under FLSA

The line between employee and independent contractor has historically been unclear. However, on January 6, the Department of Labor (DOL) provided clarification on the test for employee versus independent contractor under the Fair Labor Standards Act (FLSA). The “final rule” streamlines and clarifies the test and should “reduce worker misclassification, reduce litigation, increase efficiency, and
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Business and Business Owner Liable for FLSA and Breach of Contract Damages.

In a recent case, the court found that plaintiffs established violations under the Fair Labor Standards Act (“FLSA”) for unpaid minimum wages and retaliation, as well as breach of contract for failing to pay employees under employment contracts. The court found the employer business liable for damages for these violations and also decided to pierce
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