DOL WITHDRAWS GUIDANCE ON INDEPENDENT CONTRACTOR MISCLASSIFICATION
Trump DOL Withdraws 2015 Obama Administration Guidance
Secretary of Labor Alexander Acosta announced earlier this month that the Department of Labor would be withdrawing it’s 2015 guidance regarding independent contractors. In 2015, the Wage and Hour Administrator issued an “Administrator’s Interpretation” addressing the misclassification of employees as independent contractors under the Fair Labor Standards Act (FLSA).
The decision to withdraw the Administrator’s Interpretation should come as no surprise. Significant changes to enforcement efforts in certain areas the Department of Labor oversees was expected following the 2016 presidential election. This withdrawal should not be viewed as a change in the Department of Labor’s position or enforcement efforts regarding misclassification. As noted in the news release, the Department of Labor will continue to fully and fairly enforce all laws within its jurisdiction, including the FLSA, and expects employers to uphold their legal responsibilities under the law.
While it is likely that the Department of Labor will not expend its resources to pursue companies that have unwittingly violated the FLSA by failing to structure their independent contractor relationships correctly, employers can still expect the Department of Labor to go after companies who flagrantly violate the law or exploit low-wage workers.
The Administrator’s Interpretation, which issued July 15, 2015, set forth the test that would be used by the Department of Labor in enforcing its wage and hour laws against companies that classify employees as independent contractors. It defined employer very broadly and independent contract very narrowly. As a result, few workers could be treated as independent contractors.
To remain compliant, employers should review the Fact Sheet issued by the Department of Labor regarding this issue.
The Nevada Association of Employers (NAE) is dedicated to ensuring that employers are able to compete lawfully, ethically, and efficiently in the state of Nevada. To that end, NAE provides employers guidance on issues like this one.
Since 1938, NAE has been providing Nevada businesses with services and support that help them successfully operate and grow their business. We are very proud of our history and all that we’ve been able to provide to the business community over the years. NAE continues to offer the same great services and support that we always have as well as new services to keep member businesses at the forefront so they can succeed in an ever changing business climate.
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Nevada Association of Employers (NAE) has compiled a collection of commonly used HR forms, checklists, policies, and employer guides to help Nevada businesses manage workplace compliance and HR administration.
Whether you are looking for an employment application, employee file checklist, payroll deduction form, performance appraisal form, or FLSA exemption worksheet, NAE provides resources designed to support employers with day-to-day HR operations.
These tools help employers maintain consistent documentation practices and ensure workplace policies align with federal and Nevada employment regulations.
Employers who need additional guidance on HR compliance may also benefit from services such as HR Hotline support or professional HR audits, which help identify potential compliance gaps before they become legal issues.
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NAE members can access these HR resources through the Member Portal (login required). The portal includes downloadable HR forms, customizable policies, and other templates that help employers manage employee documentation and HR procedures efficiently.
These resources are designed to work alongside other NAE compliance tools, including the HR Compliance Checklist and Employee Handbook Review services that help employers maintain legally compliant workplace policies.
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If you don’t see the HR resource you need, NAE’s HR professionals and employment law attorneys are available to help.
Members can request guidance or customized resources through services such as Legal Hotline or employment legal services, which provide expert advice on workplace compliance and HR documentation.
Contact Nevada Association of Employers to speak with our team about your HR needs.
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