Brooks Pierce Attorneys Explain the Dangers of Misclassifying Workers Under the FLSA in Article for HR.com

In an article published by HR.com, Brooks Pierce attorneys Bryan Starrett and Lauren Hoffman discuss the Fair Labor Standards Act (FLSA) and how companies can verify that business operations and classification practices are in compliance with the law.

A $9.3 million judgement against a staffing agency in July for misclassifying over 1,000 nurses as independent contractors under the FLSA offered a reminder that even well-meaning business decisions can carry financial risk and liability exposure. The decision largely hinged on the economic realities test, a multifactor legal standard that looks beyond job titles or contracts to determine whether certain protections are afforded because a worker is an employee rather than an independent contractor.

"As businesses work through this fact-intensive analysis, it helps to keep the core purpose of the FLSA in view: protecting workers who depend on wages to earn a living,” Starrett and Hoffman explained. “Additionally, businesses should consider how to conduct operations and meet business goals without undermining proper classification.”

Bryan Starrett’s unique background gives him an invaluable perspective for understanding how a legal issue fits within clients’ business operations and goals, and how to provide thoughtful and practical counsel to clients. Lauren Hoffman’s experience in both commercial litigation and employment law allows her to manage a wide range of legal matters, including contract disputes, policy drafting, and consent decree monitoring. 

For the full article, you may click here.