Employee or Independent Contractor: The U.S. Department of Labor Weighs In

The U.S. Department of Labor recently released a memo regarding the appropriate classification of employees and independent contractors. The classification of employees has become an important topic as growing businesses such as Uber and Lyft rely heavily on the use of independent contractors, a classification increasingly challenged by workers in court. Read on to learn the factors used to determine whether a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA).

California Prohibits “Willful Misclassification” Of Employees As Independent Contractors

by Sayema Hameed

Employers should be careful when treating workers as individual contractors.  Effective January 1, 2012, California now prohibits “willful misclassification” of individuals as independent contractors.  The “willful misclassification” of an individual is defined as “avoiding employee status for an individual by voluntarily and knowingly misclassifying that individual as an independent contractor.”