Public Hearings Set for Contractor/Worker Distinction

The Labor Department is holding public hearings on the distinction between contractors and employees under the Fair Labor Standards Act (FLSA).

The first of these virtual-only sessions — June 24 from 2:30-4:30 p.m. (Eastern Standard Time) — will be geared toward employers, while the second — slated for June 29 from 5-7 p.m. (Eastern Standard Time) — will focus on workers. Registration with the Labor Department is required to attend.

According to the Labor Department, the goal is to address and rectify issues attributed to worker misclassification, which can cause a competitive disadvantage for employers that comply with the FLSA’s requirements.

The hearings are intended to inform a future rulemaking on the precise definition for both employee and contractor. The Labor Department published a rule on this issue in January, under the previous administration, but it was delayed by the current administration and later withdrawn altogether. A court order later resuscitated the rule.