From TLNT, Eric B. Meyer reports on decision in a case in the federal Court of Appeals in Philadelphia that looked at whether a worker was an employee or independent contractor. The worker was an engineer who worked 40+ hours per week for a company servicing and installing its machines at different job sites. Eric observes that the Court of Appeals applied the same economic realities test that the Department of Labor espoused in its Adminitrator’s Interpretation. Eric writes:
“Last week, I did a post about a memo from the U.S. Department of Labor, Wage and Hour Division addressing independent contractor misclassification under the Fair Labor Standards Act.
That memo described six factors which the Labor Department says reflect the “economic realities” of when a worker is an employee or an independent contractor.
On Tuesday, the Philadelphia-based Third U.S. Circuit Court of Appeals issued this unpublished opinion in which it too examined the factors that it felt are important for determining employment status under the FLSA (and New Jersey state law).
Another “economic realities” test
I’ll cut right to the chase. The Third Circuit continues to apply the same “economic realities” test as the U.S. Department of Labor:
1) the degree of the alleged employer’s right to control the manner in which the work is to be performed; 2) the alleged employee’s opportunity for profit or loss depending upon his managerial skill; 3) the alleged employee’s investment in equipment or materials required for his task, or his employment of helpers; 4) whether the service rendered requires a special skill; 5) the degree of permanence of the working relationship; 6)whether the service rendered is an integral part of the alleged employer’s business.”…”
Read the full story at Appeals Court Reaches Same Conclusion as DOL on Independent Contractors