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May 22, 2025
LABOR UPDATES YOU NEED TO KNOW
Employee vs. Independent Contractor
The United States Department of Labor Wage and Hour Division (the “Division”) issued on May 1, 2025, a Field Assistance Bulletin (the “Bulletin”) providing guidance on how to determine employee or independent contractor status when enforcing the Fair Labor Standards Act (the “FLSA”). While this Bulletin is potentially significant in some states, it will not impact the operations of New York State-based employer obligations – including New York-based CHHAs, LHCSAs, hospices and managed long-term care plans (collectively, “Agencies”) given that more stringent New York State case law will continue to control whether a person is properly classified as an employee or independent contractor.
On matters of independent contractor classification, Agencies should continue to follow New York case law, which continues to require consideration of the following four elements: (1) whether the principal (employer) retains the power to select and engage the servant; (2) the principal’s methods of payment for services rendered by the servant; (3) whether the principal has the power to dismiss the servant; and (4) the extent of the principal’s power of direction and control over the servant’s activities. The right to control is the key factor in this determination.
Read more here.
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