The United States Department of Labor (DOL) offers 12 “myths” and attempts to provide the facts to correct these myths. Richard J. Reibstein has correctly criticized the DOL facts as oversimplifications in “Misclassification Mythbusters”: The Labor Department’s Latest Effort to Crack Down on Independent Contractor Misclassification | Pepper Hamilton LLP – JDSupra
The DOL Mythbusters provides a helpful chart with links to other resources:
|Law:||Benefits, Protections and Employer Requirements:||More Information:|
|Fair Labor Standards Act (FLSA)|
The FLSA also requires employers to keep employment records.
The FLSA’s definition of employment was designed to be broad and provide expansive coverage for workers. As a result, most workers are employees under the FLSA.
|Migrant and Seasonal Agricultural Worker Protection Act (MSPA)|
MSPA uses the same broad definition of employment as the FLSA.
For more information, visit the MSPA website and the DOL Misclassification Initiative page.
|Family and Medical Leave Act (FMLA)|
The FMLA uses the same broad definition of employment as the FLSA but has additional eligibility requirements in order for employees to be entitled to job-protected leave.
|State Workers’ Compensation Laws||The employment status of workers who are injured while employed by private companies or by state and local governments is determined by each state’s workers’ compensation board.|
|Internal Revenue Code|
The federal tax rules generally focus on the work relationship that exists between the worker and employer and whether the employer has the right to control how work is done, looking at many facts and circumstances.
Please visit the Internal Revenue Service’s “Independent Contractor versus Employee” page to learn more.
|State Unemployment Insurance Laws|
Each state UI law presumes a worker is an employee unless certain tests in each state’s UI law are passed to show that the worker is an independent contractor. The tests in each state differ slightly; however, the tests generally examine the direction and control exercised by the employer over the service performed and whether the worker is customarily engaged in an independent business.
Information and contacts for state UI agencies is available here
See all the myths and and the chart at Misclassification Mythbusters – Wage and Hour Division (WHD) – U.S. Department of Labor