DOL Withdraws Final Rule on Independent Contractor Status under FLSA

On May 5, 2021, the Department of Labor (“DOL”) announced a new final rule withdrawing the “Independent Contractor Status Under the Fair Labor Standards Act” final rule (Independent Contractor Rule) that had been published on January 7, 2021, to take effect on March 8, 2021. Of note, the DOL is not issuing new federal guidance on independent contractor status with this new rule. The DOL indicated that the January 2021 rule “is inconsistent with the FLSA’s text and purpose, and would have a confusing and disruptive effect on workers and businesses alike. . . .” The new Rule will be published on May 6, 2021.

Employers should keep in mind that many states, including Wisconsin, have adopted their own tests for independent contractor status. These state laws can vary widely from state-to-state, and even within a state, depending upon the issue being addressed (i.e., unemployment eligibility, wage and hour, tax liability). Lake Effect continues to monitor federal and state laws and guidance relating to independent contractor status, and we will keep you apprised of developments in this area.

Lake Effect is here to answer your questions about independent contractors, FLSA, and labor laws. We continue to monitor important legal and HR developments, as well as COVID-related updates from federal, state, and local authorities. Please keep watching our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

EE0-1 Reporting Requirements Resume

On April 26, 2021, the Equal Employment Opportunity Commission (EEOC) announced the reopening of the 2019 and 2020 EEO-1 Component 1 Data Collection.

As a reminder, all private sector employers with 100 or more employees, and all federal contractors with 50 or more employees meeting certain criteria must annually submit demographic workforce data, including data by race/ethnicity, sex, and job categories on the EEO-1 Component 1 report. The EEOC stayed collection of the 2019 data due to the pandemic. The deadline for submitting both the 2019 and 2020 EEO-1 Component 1 data is Monday, July 19, 2021.

The latest filing updates and additional information regarding submission of EEO-1 Component 1 Data are available at EEOCdata.org/eeo1. Employers that have received the EEO-1 notification letter should follow the directives contained therein. Eligible employers that have not received the letter may contact the EEOC’s Filer Support Team at FilerSupport@eeocdata.org for assistance. If you have questions about the EEO-1 reporting process, please reach out to any of Lake Effect’s attorneys or HR professionals.

Lake Effect is here to answer your questions about employer reporting requirements. We continue to monitor important legal and HR developments, as well as COVID-related updates from federal, state, and local authorities. Please watch our blogs and emails for these important updates, as well as discussions of how compliance meets culture. To dive into these issues, contact us at info@le-hrlaw.com or 1-844-333-5253.

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(844) 333-5253 (LAKE)
info@le-hrlaw.com

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