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Seyfarth Synopsis
: After delaying the effective date of a finalized Trump-era interpretive regulation that would have brought much needed clarity to the definition of employee under the Fair Labor Standards Act, the DOL yesterday formally repealed that guidance. The result is that companies, workers, and courts will continue to struggle in classifying which workers are employees and which ones can be independent contractors.
Companies, workers, and courts long have wrestled with how to draw the line between an employee who is subject to various employment laws and an independent contractor who is not. This confusion occurs at several levels:
▪ Companies are subject to a hodgepodge of federal employment laws, many of which provide differing definitions of employee, or none at all;