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Employee or Independent Contractor? Labor Department Weighs In

Jaclyn Jaeger | July 16, 2015

The Department of Labor this week issued new guidance on how companies should distinguish between employees and independent contractors. 

The 15-page memo, issued July 15, sets forth the test the Labor Department will use to enforce its wage and hour laws against companies that wrongly classify employees as independent contractors. “Misclassification of employees as independent contractors is found in an increasing number of workplaces in the United States, in part reflecting larger restructuring of business organizations,” the Labor Department stated.

Richard ReibsteinRichard Reibstein, a partner in the labor and employment practice group at law firm Pepper Hamilton, wrote in a...

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