Thursday, October 23, 2014

NLRB just rewrote the rules on employee classification

By Christian Scahppel


Independent contractors (IC) can’t join unions. As a result, it’s in the National Labor Relations Board’s (NLRB) best interest to make it harder to classify employees as ICs — and that’s exactly what it just did.


In a case involving FedEx drivers, the NLRB has added another factor to the test a lot of employers — and courts — use to determine whether a worker is an IC or not.

And in doing so, it has waved its hand in the face of precedent set by a D.C. Circuit Court.
The added factor is more of an amendment to an existing one — the entrepreneurial opportunity standard.

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