Posts tagged FLSA
DOL once again set to tackle joint employer, independent contractor regulations
August 20, 2025 // Meanwhile, DOL in May told the 5th U.S. Circuit Court of Appeals that it would no longer defend the last administration’s rule allowing retirement plan fiduciaries to consider environmental, social and governance, or ESG, factors when making investment decisions from a lawsuit filed by several Republican-led states. In another shift, DOL in June said it would begin issuing opinion letters through five of its subagencies. The agency’s new regime published the first such letter in May on the subject of the independent contractor classification status for virtual marketplace company workers. The letter reinstated a stance DOL previously articulated in a 2019 letter that had been rescinded during the Biden administration.
New Game Plan: White House and Congress Move to Clarify Student Athlete Unionization Rights
July 31, 2025 // The SCORE bill’s ban is broad. Its key provision says, in part: “no individual may be considered an employee of an institution, a conference, or an interstate intercollegiate athletic association based on the participation of such individual on a varsity sports team or in an intercollegiate athletic competition as a student athlete.” In addition, the bill blocks states from enforcing any law that “governs or regulates the compensation, payment, benefits, employment status, or eligibility of a student athlete (including a prospective student athlete) with respect to participation in intercollegiate athletics.” It specifically blocks any state law that “relates to the right of a student athlete to receive compensation or other payments or benefits directly or indirectly from any institution, associated entity or individual, conference, or interstate intercollegiate athletic association.”
Comer introduces bill to help small business owners
July 19, 2025 // Kentucky First District Congressman James Comer, R-Tompkinsville, has introduced the Save Local Business Act, which clarifies the joint employer standard to provide certainty for small business owners and workers across the country. Comer notes that in recent years, small businesses have suffered under unelected bureaucrats at the National Labor Relations Board (NLRB) who have dramatically expanded the definition of “joint employer” and implemented burdensome regulations for small businesses. “Congress must promote policies that empower small businesses and free them from stifling regulations pushed by an unchecked and unelected federal bureaucracy,”
Former EEOC Commissioner and Acting WHD Administrator Keith Sonderling Announced as Pick for Deputy Secretary of Labor
January 16, 2025 // The deputy secretary of labor serves as the de facto chief operating officer of the DOL, managing an approximately 17,000-person workforce and a $14 billion dollar budget. Further, the deputy manages the politically appointed heads of each agency that falls under the DOL, including vital agencies such as the Occupational Safety and Health Administration, WHD, the Employee Benefits Security Administration, and the Office of Federal Contract Compliance Programs (OFCCP), among others. Sonderling has a track record of prioritizing clear guidance on both traditional issues such as those found in wage and hour law or occupational safety and cutting-edge issues such as the use of artificial intelligence (AI) in the workplace. Sonderling’s record throughout his career provides insight into what employers can expect from Sonderling’s leadership as the deputy secretary of labor.
DOL Making it Harder to Hire Independent Contractors
October 1, 2024 // The DOL’s test is just one of many. The IRS uses a “right-to-control” test, which is generally more business-friendly, focusing on whether the hiring firm controls how the work is done. In contrast, many states apply the strict ABC test, where a worker must: ⦁ be free from the company’s control, ⦁ work outside the usual course of the hiring firm’s business, and ⦁ be engaged in an independent business or trade.
Diner Chain Waffle House Underpaid Workers, Union Alleges in Federal Complaint
September 24, 2024 // According to the complaint, servers spent on average two to three hours of a seven-hour shift performing non-tipped work. The USSW estimates servers lose as much as $46.8 million in unpaid wages annually due to the alleged violations. These infractions are not uncommon in the industry: a 2012 Labor Department investigation of more than 9,000 restaurants found more than 84% of them violated tip credit rules, resulting in millions in lost wages.
Op-Ed: Union membership is now political. So can the government still require people to associate with a union?
July 10, 2024 // Since then, employees have argued that exclusive union representation does violate the First Amendment. Exclusivity saddles them with the “services” of nakedly political bargaining agents. Lower courts have turned those arguments aside mostly because of an older case, Minnesota Board for Community Colleges v. Knight, which suggested that exclusive representation was okay in the public sector. Knight seemed to say that when the government bargains about working conditions, it can choose its own bargaining partner. And if it chooses one exclusive union to bargain with, that choice burdens no one’s associational rights. But whether or not that’s what Knight meant, the decision has no bearing on private-sector bargaining. In the private sector, the government does not choose its own bargaining partner; it imposes one on private parties. And some of those parties object to their unions’ political views—views that are increasingly central to unionization itself. So private-sector bargaining raises a different question: can the government force private citizens to associate with a union when that union’s core purpose is increasingly political? (Elsewhere, I have argued at greater length that it cannot.)
RESEARCH: Minimum Wage Laws and App-Based Workers
March 30, 2024 // Rideshare apps are not too different. They generate revenue by taking a share of the total cost paid by riders to drivers. What is less clear is how large that fee is and how that fee has changed over time and across platforms. Rather than seeking out a rigid wage floor, a fee floor could stand in for the sense of fairness across platforms of different types. If workers on platforms are truly entrepreneurs, picking and choosing when, where, and how to allocate their labor across multiple platforms, doing more to ensure that markets offer a fair share of revenue can get the job done far more efficiently than attempting to mandate any particular amount.
Commentary: ATR Applauds House Education & Workforce Committee for Defending Independent Contractors
March 22, 2024 // “Independent contractors want to be their own boss. But Biden and the Democrats want to force them to HAVE a boss,” said Grover Norquist, President of Americans for Tax Reform. Americans for Tax Reform applauds the House Education & Workforce Committee majority for passing Congressman Kiley’s resolution to nullify the Biden DOL’s harmful reclassification of independent contractors.
IWF Signs Independent Contracting Coalition Letter
March 18, 2024 //