Gig Workers Are Contractors, DOL Says in Latest Letter (1)

Workers for an unnamed company operating in the “sharing” economy can’t be considered “employees” under the Fair Labor Standards Act, the Labor Department found in its latest opinion letter, issued April 29.

The DOL used a six-factor test—previously established by the U.S. Supreme Court—in determining when a worker with the “virtual marketplace company” is an independent contractor or an employee of that company. Only employees are entitled to minimum wages and overtime pay under federal law.

The legal and business community has sought clarity from the agency regarding the issue of worker misclassification amid the rise of the gig ...