Tag Archives: independent contractors

Department of Labor Withdraws Trump-Era Independent Contractor Rule

The latest Department of Labor (DOL) move, in keeping with the policy goals of the Biden administration, is withdrawal of the January 2021 rule that determined whether a worker was classified as an independent contractor under the Fair Labor Standards Act (FLSA). The withdrawn rule allowed employers to classify workers as independent contractors more easily […]

Non-compete agreements: Are your company’s enforceable?

Non-compete agreements often come under scrutiny, and a recent case illustrates the connection between reasonableness and enforceability of such contracts. In Ag Spectrum Co. v. Elder, the Eighth Circuit court affirmed a trial court’s ruling that the company’s non-compete agreement with an independent contractor was unreasonable and, therefore, not enforceable. The defendant, Vaughn Elder, had […]

Department of Labor Rolls Back Joint Employment Guidance

Earlier this month, U.S. Department of Labor (DOL) Secretary Alex Acosta announced that the agency is withdrawing two guidance letters calling for tighter standards for determining joint employment. The first letter, issued in 2015, sought to restrain the misclassification of employees as independent contractors. The second, issued in 2016, called for greater scrutiny of situations […]

Are misclassified independent contractors putting your company at risk?

The Department of Labor (DOL) has long eschewed the employer practice of classifying workers as independent contractors in order to sidestep compliance with government regulations. From the employer’s perspective, the use of independent contractors allows them to hire highly skilled professionals for specialized work without the expense of benefits and payroll taxes. But misclassification can […]