The Coalition to Promote Independent Entrepreneurs is very appreciative of the action announced today by U.S. Secretary of Labor Alex Acosta to withdraw Administrator’s Interpretation 2015-1. This Obama-Administration guidance document represented a significant expansion of the “economic realities” test used to define the term “employee” for purposes of the Fair Labor Standards Act (“FLSA”), which created substantial uncertainty as to whether traditionally recognized independent-contractor relationships would be respected for purposes of the FLSA. The Labor Secretary also announced the withdrawal of Administrator’s Interpretation 2016-1, which expanded the test for joint-employment under the FLSA. CLICK HERE for a copy of the news release.
Secretary Acosta’s action today will be of immense value to independent contractors and their clients, as it increases the level of certainty that their intended independent-contractor relationships will be respected for purposes of the FLSA. This added certainty will foster the entrepreneurial sector of our nation’s economy and lead to economic growth.
If you have any questions concerning this development, please let us know at [email protected].
