Recording | Employee or Independent Contractor? Classification Under the FLSA (March 27)
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The U.S. Department of Labor published a final rule on January 9, 2024, defining "independent contractor" under the Fair Labor Standards Act (FLSA). The final rule went into effect on March 11, 2024. The final rule rescinds a 2021 rule defining the same term, and in its place, adopts a six-factor test focused on the "economic reality" of the relationship between a potential employer and a worker. The test asks whether, as a matter of economic realities, the worker depends on the potential employer for continued employment or is operating an independent business.
In this legal update, the panel explored and explained the DOL's six-factor test, and discussed:
- Implications on businesses who utilize contractors
- How it intersects with FDIC Section 19
- Predictions on the future of litigation on contractor classifications
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Allison C. Williams
Shareholder
Littler
Allison C. Williams represents and advises employers on all matters of labor and employment law in state and federal court as well as in investigations and audits conducted by governmental agencies. Her practice focuses on class and collective action wage and hour disputes as well as single-plaintiff discrimination, harassment, and retaliation claims. Allison represents clients against claims including:
Misclassification as independent contractors
Misclassification as exempt from overtime
Failure to pay overtime and/or minimum wage under the Fair Labor Standards Act (FLSA)
Discrimination, harassment, and retaliation claims under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Age Discrimination in Employment Act
Employment-related common law claims under Texas law, including breach of contract, fraud and fraud in the inducement, promissory estoppel, unjust enrichment
Failure to comply with wage and hour obligations under California state law
Violation of the Uniformed Services Employment and Reemployment Rights Act (USERRA)
In addition to representing clients in litigation, Allison represents clients during investigations conducted by the U.S. Department of Labor, the Equal Employment Opportunity Commission, the Texas Workforce Commission, the California Department of Fair Employment and Housing, and the California Division of Labor Standards Enforcement.
Before joining Littler, Allison interned with the Hon. Magistrate Judge Calvin Botley of the U.S. District Court, Southern District of Texas. After graduating from law school, she was a litigation associate at another national law firm in Texas where she represented state employers against Section 1983 claims, wrongful termination, failure to protect, failure to train, and negligent hiring claims. She also represented employers in various maritime disputes, including claims for maintenance and cure.
Learn more about Allison C. Williams here: https://www.littler.com/people...
Ben Sandahl
Shareholder
Littler
Ben Sandahl counsels and advocates for management facing a wide variety of workplace issues. His practice encompasses many areas of labor and employment law for a diverse range of companies, from large publicly traded corporations to small nonprofit organizations, all in a variety of industries. Ben practices in all areas of labor and employment matters, and has a particular focus on independent contractor classification litigation and analysis.
Ben regularly advises clients before litigation arises with the goals of avoiding litigation where possible and advantageous positioning should litigation arise. He litigates individual, class, and collective claims of all types, appearing in state and federal courts and before administrative agencies throughout the country.
Prior to joining Littler, Ben worked at another national law firm, winning the then-largest judgment in the history of Illinois
Learn more about Ben Sandahl here: https://www.littler.com/people...
Abby L. Bocheneck
Associate
Littler
Abby L. Bochenek represents and advises employers in a broad range of employment matters before federal and state courts and administrative agencies, with an emphasis on class and collective matters and mass actions. Abby’s experience handling complex matters spans the wage and hour and employment discrimination areas. She has specific knowledge and experience in issues relating to class and collective action certification and decertification under Fair Labor Standards Act Section 216(b) and Federal Rule of Civil Procedure 23.
In addition to representing employers in class and collective action litigation and other complex employment litigation, Abby regularly defends clients against single plaintiff and multi-plaintiff actions alleging claims under the Fair Labor Standards Act, Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Age Discrimination in Employment Act, and state and local wage and hour and anti-discrimination statutes.
Abby often works with clients in the following industries:
- Restaurant and hospitality
- Chemicals and food safety
- Waste disposal
- Gig economy
- Transportation, including airline and railroad
In addition to representing clients in litigation, Abby provides counselling on employment and separation agreements and employment policies, practices and procedures. She also frequently provides virtual and in-person EEO trainings.
Prior to joining Littler, Abby was an associate at an internationally recognized boutique employment law firm. During law school, Abby earned her Certificate in Litigation and Alternative Dispute Resolution and interned for the Law Offices of Chicago-Kent’s Employment and Civil Rights Clinic. She was elected as the president of the Society of Women in Law and inducted into the prestigious Bar and Gavel Society. Prior to attending law school, Abby worked as a media buyer and planner for an international media agency.
Learn more about Abby L. Bochenek here: https://www.littler.com/people...