Sort the file's facts under the six FLSA economic-reality factors
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Place each fact the file states under one of the six factor headings on Department of Labor Fact Sheet 13, and quote the page. Write no classification and no statement that a label, a Form 1099, or a signed agreement decides the question.
- What the lawyer must review
- You decide whether the worker is an employee or an independent contractor. Department of Labor Fact Sheet 13, revised March 2024, says the question under the Fair Labor Standards Act is decided by the economic realities of the relationship: economic dependence on the employer for work indicates employee status, and being in business for oneself indicates independent-contractor status. No single factor determines status. The six factors are opportunity for profit or loss depending on managerial skill, investments by the worker and the employer, permanence of the work relationship, nature and degree of control, whether the work is integral to the employer's business, and skill and initiative. The fact sheet states that what the worker is called is not relevant, that payment off the books or a Form 1099 does not make a worker an independent contractor, and that agreeing orally or in writing to be an independent contractor, including by signing an agreement, does not make the worker one. It also states that the place of work, a state or local licence, and the time or mode of pay do not determine status. The fact sheet says it is consistent with the 2024 rule at 89 Federal Register 1638, the legality of which is the subject of current litigation, and that the rule remains in effect for purposes of private litigation. It points to Field Assistance Bulletin 2025-1 (1 May 2025) for the Wage and Hour Division's enforcement position. That bulletin was not opened, so this table does not state an enforcement position. The fact sheet says its contents do not have the force and effect of law. A notice of proposed rulemaking was announced on the same page on 26 February 2026. The proposal was not opened. ABA Formal Opinion 512 requires independent verification of a tool's sorting.
- Written for / version
- United States versionUSCth
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes extracting and organising information. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Obtain and inspect the relevant current official register or search result. Confirm identities, interests and the date and scope of the search.
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.