Fair Labor Standards Act

Be advised that the U.S. Department of Labor is planning to implement a sharpened test to determine who is an independent contractor under the Fair Labor Standards Act. 

Theoretically, this will streamline and clarify the test to identify independent contractors to reduce worker misclassification, reduce litigation, increase efficiency, and increase job satisfaction and flexibility. However, this could also have an impact on your business.

Federal law and Nevada law are not identical on this determination. Furthermore, other states (such as California) have dramatically different methods of determination.

While the changes contemplated won’t take effect until March 8th, 2020, there is still potential for modification and/or suspension of the plan under the new Presidential administration. Having said that, all independent contractor agreements should be in writing and in compliance with both federal and Nevada law. Should you need any support in determining how to classify someone or would like to update your policies and procedures for classification, we are here to help!

You can also learn more about Nevada’s approach to IC status in previous articles I’ve written here:

https://gordonlawlv.com/working-with-independent-contractors/

https://gordonlawlv.com/independent-contractors-can-be-a-costly-mistake/