Fair Labor Standards Act (FLSA) Guidance: Who Qualifies and What You Get
Understand how to correctly classify workers to ensure you meet federal minimum wage and overtime requirements.
This guidance provides rules to help you determine if a worker is an employee or an independent contractor.
Who it's for
This is specifically intended for tradespeople, such as plumbers, who hire helpers or apprentices to assist with their work.
What you get
You receive legal clarity regarding worker status. This helps you understand whether a person should be treated as an employee (W-2) or an independent contractor (1099).
What it costs you
To follow these rules, you must comply with all federal minimum wage and overtime laws for anyone classified as an employee.
The catch to know
The biggest risk is misclassification. If you label someone as an independent contractor when they should legally be considered an employee, you face significant legal liability.
How to apply
- Review the specific criteria used to distinguish between employees and contractors.
- Evaluate the level of control you have over the worker's schedule and methods.
- Determine if the worker is performing essential parts of your business.
- Consult the official Department of Labor resources for detailed classification tests.