Worker Classification: Employee vs. Independent Contractor
The FLSA overtime and minimum wage rules apply to employees, not to every contractor.
The rule
The FLSA sets minimum wage and overtime for covered employees. A person who is an independent contractor is outside those employee rules. Getting the label wrong can mean unpaid overtime, unpaid employment taxes, and other penalties. Publication 15 treats the person who pays employees as the employer for withholding.
What employers must do
Weigh the whole relationship. The IRS groups the facts into behavioral control (what is done and how), financial control (how the person is paid, who pays expenses, who provides tools), and the type of relationship (a written contract, benefits, whether the work continues, and whether the work is a key part of the business). No single factor decides it. A remote worker can still be an employee if you control how the work is done. If it stays unclear, either the business or the worker may file Form SS-8. Misclassifying an employee as a contractor can make the business liable for employment taxes.
Effective dates
The IRS common-law categories are current on the page reviewed. No January 1, 2027 change was on that page.
What this means for BOSS partners and associates
BOSS is often the employer of record for the associate. Wage, break, leave, posting, and tax rules usually follow the state where the associate works. Tell BOSS that state before the assignment starts. Associates should record every hour worked on the timesheet. Do not promise a pay practice, a leave bank, or a posting the statute does not require.
Questions? Contact BOSS Support at support@backofficenow.com.
Sources
This article is general information, not legal advice. Laws change; check with BOSS Support or your own counsel for your situation.