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Administrator's Interpretation No. 2015-1 - the Application of the Fair Labor Standards Act's "suffer or Permit" Standard in the Identification of Employees Who Are Misclassified as Independent Contractors
Administrator's Interpretation No. 2015-1 - the Application of the Fair Labor Standards Act's "suffer or Permit" Standard in the Identification of Employees Who Are Misclassified as Independent Contractors is a 15-page legal document that was released by the U.S. Department of Labor - Wage and Hour Division on July 15, 2015 and used nation-wide.
FAQ
Q: What is Administrator's Interpretation No. 2015-1 about?
A: It is about the application of the Fair Labor Standards Act's "suffer or permit" standard in identifying employees who are misclassified as independent contractors.
Q: What is the Fair Labor Standards Act?
A: The Fair Labor Standards Act is a federal law that sets standards for minimum wage, overtime pay, and child labor.
Q: What does "suffer or permit" standard mean?
A: The "suffer or permit" standard means that an individual is considered an employee under the Fair Labor Standards Act if they are economically dependent on the employer.
Q: What is the issue addressed in the interpretation?
A: The issue addressed in the interpretation is the misclassification of employees as independent contractors.
Q: Why is misclassification a problem?
A: Misclassification can lead to workers being denied the benefits and protections entitled to employees, such as minimum wage and overtime pay.
Q: What are some factors used to determine employee classification?
A: Factors used to determine employee classification include the extent of control by the employer, the worker's opportunity for profit or loss, and the permanency of the relationship.
Q: How does misclassification impact workers?
A: Misclassification can result in workers being denied benefits such as health insurance, retirement plans, and workers' compensation.
Q: What are the potential consequences for employers who misclassify workers?
A: Employers who misclassify workers may be liable for back pay, penalties, and other legal consequences.
Form Details:
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