U.S. Department of Labor Issues Final Independent Contractor Rule

This week, the Department of Labor issued the final independent contractor rule assessing how workers should be classified under the Fair Labor Standards Act (FLSA) given the department’s concerns with worker misclassification. The FLSA is the law that sets standards for minimum wage, overtime pay, recordkeeping, youth employment standards, and other rules impacting employees in the private sector. 

Real estate professionals generally are not subject to the FLSA, if they are independent contractors; however, there are concerns that application of this rule may lead to the misclassification of real estate professionals as employees.

This week, the Department of Labor issued the final independent contractor rule assessing how workers should be classified under the Fair Labor Standards Act (FLSA) given the department’s concerns with worker misclassification. The FLSA is the law that sets standards for minimum wage, overtime pay, recordkeeping, youth employment standards, and other rules impacting employees in the private sector. 

Real estate professionals generally are not subject to the FLSA, if they are independent contractors; however, there are concerns that application of this rule may lead to the misclassification of real estate professionals as employees.

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