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2020's omnipresent DOL investigations likely spilling into new year

December 2020 employment law letter
Authors: 
Jodi Bohr, Tiffany & Boscoe, P.A.

Aside from the personal and professional challenges 2020 presented (the COVID-19 pandemic, government shutdown orders, concerns about keeping employees safe, layoffs, remote working, homeschooling, and navigating the unknown), what stands out most to me in my practice—and had the biggest impact on my clients—was the U.S. Department of Labor's (DOL) continued uncompromising pursuit of investigations into employers' wage and hour practices. The department seemed to focus its efforts on companies using independent contractors as part of their workforce, all the while seemingly revising regulations to make it easier for businesses to classify workers as independent contractors. With those contradictory actions and a new administration taking over, how can employers protect themselves from wage and hour liability?

Proposed regulations and five-factor economic realities test

On September 22, the DOL proposed regulations regarding workers who should be classified as employees and those who can be designated as independent contractors. The proposed rule considers five factors in determining whether workers are in business for themselves (independent contractors) or economically dependent on a putative employer (employees).

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