GTB&S labor attorney, John Roca, blogged about the Fair Labor Standards Act (“FLSA”) protections for employees who are misclassified by employers as so-called independent contractors. Roca noted that the practice is significant because independent contractors are not entitled to minimum wage or overtime, and the practice thereby avoids the obligations set forth in the FLSA.
On September 19, 2011, the Department of Labor issued a press release announcing that Secretary of Labor Hilda L. Solis and IRS Commissioner Doug Shulman entered a series of memorandums of understanding to improve the departmental efforts to end the practice of misclassifying employees as independent contractors. It was noted that the departmental coordination should improve not only cracking down on employers who are evading payment of minimum wage and overtime requirements, but who also attempt to avoid other important state and federal protections for employees, such as workers compensation and unemployment compensation. It was further noted that the memorandums of understanding will enable the U.S. Department of Labor to share information and coordinate law enforcement with the IRS and participating states in order to level the playing field for law-abiding employers.
If you have questions regarding your classification as an independent contractor, and the application of the FLSA to your place of employment, the law offices of Gallon, Takacs & Boissoneault stands ready to review and analyze your situation. Feel free to contact us.