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U.S. Department of Labor Emphasizes Enforcement of Fair Labor Standards Act Classifications: Are Your Employees Correctly Classified?

February 2011
Employment Law Notes
As employers are acutely aware, properly classifying employees under the federal Fair Labor Standards Act (“FLSA”) presents many challenges. Exempt categories are numerous and complex and may inadvertently be jeopardized when seemingly unrelated employment actions are taken (such as payroll deductions). Determining whether to classify an individual as an “employee” or “independent contractor” requires an intense fact-specific analysis of up to 20 different factors established by different government agencies.