Tag Archive | wage and hour

Administrator’s Interpretation on Worker Classification

Department of LaborThe Wage and Hour Division of the Department of Labor provided recent guidance for determining worker classification. The WHD says a business “‘suffers or permits’ an individual to work if, as a matter of economic reality, the individual is dependent on the entity.”  The economic reality test factors are:

(a) the extent to which the work performed is integral to the employer’s business;

(b) the worker’s opportunity for profit or loss depending on managerial skill;

(c) the extent of the relative investments of the employer and the worker;

(d) whether the work performed requires special skills and initiative;

(e) the permanency of the relationship; and

(f) the degree of control exercised or retained by the employer.

Businesses are to analyze these factors in conjunction with each other, and no factor is given more weight than another. In particular, the “control” factor should not be given more weight. If you have questions or want to discuss how the relationships with your workers are structured, give us a call at Wilson Worley, PC.

 

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Overtime Settlement for Home Care Workers

Almost fifteen hundred home care workers will will recover $1.1 million in settlement of a class-action case against their employer.  The recovery is against non-profit McMillan’s Home Care Agency.  The case was originally filed in 2010, alleging blatant violation of wage-and-hour laws for New York City workers with individuals working up to 60 hours a week without additional compensation.  Approximately one in seven low wage earners in New York are in the home care industry.