U.S. Supreme Court May Ultimately Have The Final Word On The Future Of Unpaid Internships In The Private Sector
By William D. Welkowitz, Outten & Golden LLP partner Rachel M. Bien was interviewed for this article. (Reproduced with permission from FLSA Litigation Tracker, FLLTSR 2015:004 (Oct. 26, 2015). Copyright 2015 by The Bureau of National Affairs, Inc. (800-372-1033))
Justin M. Swartz and Juno Turner, Labor & Employment Law, Section of Labor and Employment Law, American Bar Association, Winter 2013, Volume 41, Number 2
The Epidemic Of Employer Misclassification Of Employees As Independent Contractors Under The Fair Labor Standards Act, And The Courts' Response
Justin M. Swartz, and Mariko Hirose, and contributions by Piper Hoffman, 2009
The Fair Labor Standards Act (FLSA)’s compensation requirements, such as minimum wages and overtime pay, apply only to “employees.” Chao v. Mid-Atl. Installation Servs., Inc., 16 F. App'x 104, 105 (4th Cir. 2001). Employers can get around these requirements and lower their tax bills at the same time by classifying workers as “independent contractors” instead of “employees.” Employers classify as independent contractors many workers who do not meet the legal definition: the Department of Labor estimates that up to 30% of U.S. employers misclassify workers. Courts have found rampant violations across certain industries.