Recent Department of Labor Actions Seek to Limit Independent Contractor Misclassification and Raise the Salary Requirements for Overtime Exemption

On July 15, 2015, the U.S. Department of Labor (DOL) issued Administrator’s Interpretation No. 2015-1 to address misclassification of independent contractors under the wage and hour requirements of the Fair Labor Standards Act (FLSA). Also, on June 30, 2015, the DOL issued a proposed regulation amending the exemption tests for “white collar” employees under the FLSA. Both of these actions highlight the need for employers to re-examine their classifications of individuals as contractors or as exempt from overtime pay requirements.