Rauls is quoted by Law360 about the DOL misclassification guidance
In July, the U.S. Department of Labor issued guidance on how to determine whether a worker is an independent contractor or an employee under the Fair Labor Standards Act. The misclassification guidance says most workers qualify as “employees” under the FLSA's expansive definitions.
In this article, Ruth Rauls, a special counsel in Saul Ewing’s Labor and Employment Practice, commented on the significance of the DOL’s FLSA misclassification memo.
“This memo, coupled with the recently released proposed rules increasing the minimum salary threshold for FLSA white collar exemptions, demonstrates the DOL is taking aim at employers’ efforts to cut labor costs,” Ruth said in the article.
Ruth also commented on the specific industries where employers are being targeted, highlighting the construction, cleaning services and health care industries.
“While the DOL remained focused on the 'economic realities' test, it emphasized that employer control is not determinative,” said Ruth in this article. “Instead, the agency’s primary inquiry is the 'suffer or permit to work' definition in the statute.”
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