INNOVATION KNOW YOUR BLOCKERS RIGHTS
Proper worker classification requires employers to evaluate the six economic reality factors when determining a worker ’ s status for FLSA purposes . No single factor ( or set of factors ) automatically determines a worker ’ s status as either an employee or an independent contractor .
• Whether the worker determines or can meaningfully negotiate the charge or pay for the work provided ;
• Whether the worker accepts or declines jobs or chooses the order and / or time in which the jobs are performed ;
• Whether the worker engages in marketing , advertising , or other efforts to expand their business or secure more work ; and
• Whether the worker makes decisions to hire others , purchase materials and equipment , and / or rent space .
A worker ’ s decision that impacts the amount of pay they receive , such as working more hours or jobs , when they are paid a fixed rate per hour or job generally does not suggest the worker exercises managerial skill .
If a worker has no opportunity for a profit or loss , then this factor suggests they are an employee .
3 . THE AMOUNT OF SKILL AND INITIATIVE REQUIRED FOR THE WORK
This factor considers whether the worker uses specialized skills to perform the work and whether those skills contribute to the business-like initiative , or if the work is dependent on training from the potential employer . This factor indicates employee status when the worker does not use specialized skills to perform the work or is dependent on training from the potential employer to perform the work .
Where the worker brings specialized skills to the work relationship , this fact is not indicative of independent contractor status because both employees and independent contractors may be skilled workers . It is the worker ’ s use of those specialized skills in connection with business-like initiative that indicates that the worker is an independent contractor .
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