The U.S. Department of Labor issued a new “Administrator’s
Interpretation” on employee / independent contractor status under the
FLSA.  Administrator’s Interpretation No. 2015-1 (July 15, 2015).

Although there is nothing too “earth-shattering” here, it does emphasize that the common law “control” test is not
outcome-determinative under the FLSA.  

Instead, the FLSA uses the economic
realities
test that has the following factors:
(A) the extent to which the work
performed is an integral part of the employer’s business;
(B) the worker’s opportunity for
profit or loss depending on his or her 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.
Whether the worker’s activities are tightly controlled by the hiring entity is only one of many factors the DOL will look at to determine whether the worker is an employee.