Plain-English summary
Court narrows rules for who counts as an employee under the Fair Labor Standards Act
The Court unanimously reversed the Fourth Circuit and sent the case back, clarifying how to decide when a worker is an employee (covered by minimum-wage and overtime rules) versus an independent contractor under the Fair Labor Standards Act (FLSA). Justice Kavanaugh wrote the opinion; Justice Gorsuch (joined by Justice Thomas) wrote a concurring opinion.
Why this matters
The decision affects who is eligible for federal minimum wage and overtime protections. Employers and workers will rely on the Court's guidance to classify workers correctly — which determines pay, benefits, and legal protections. The ruling also affects how lower courts evaluate evidence and apply the multi-factor test in FLSA classification disputes.
Who may feel it
- Employees and workers seeking minimum wage or overtime pay
- Employers that use independent contractors or flexible labor arrangements
- Labor and employment lawyers and human-resources departments
- State and federal courts handling FLSA cases
Key questions
- What legal test should courts use to decide when a worker is an "employee" covered by the FLSA versus an independent contractor?
- How should courts weigh the various factors (such as degree of control, opportunity for profit or loss, and investment in equipment) used to classify workers under the FLSA?