Decide whether a worker is an employee or an independent contractor under the FLSA
Key facts
- Human involvement
- RedLawyer-led
- How AI is used
- From the engagement papers, list how the worker is paid, who sets the schedule and the price, what each side supplies, whether the worker has other clients, and the words used to label the worker. Do not state a conclusion and do not put a conclusion into a contract or a letter.
- What the lawyer must review
- You decide the status. Nothing the tool writes goes into a contract or advice. The Wage and Hour fact sheet says the Fair Labor Standards Act looks at economic reality. The title, a Form 1099, and a signed independent-contractor agreement do not decide it. The fact sheet, which it says is consistent with the 2024 rule at 29 C.F.R. part 795 for private litigation, lists six factors and says no one factor controls: opportunity for profit or loss depending on managerial skill; investments by the worker and the employer; degree of permanence; nature and degree of control; whether the work is integral to the business; and skill and initiative. The fact sheet says the legality of the 2024 rule is in litigation and that the rule remains in effect for private litigation, and 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. The same page says a proposed rule was announced on 26 February 2026. Do not treat the proposal as the rule in force. Tax classification was not opened. Opinion 512 requires you to verify the list before you rely on it.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Supporting preparation only. Potential support includes assembling provisional schedules. Confirm the tool’s capability and permitted scope. The tool writes nothing into the document. Substantive advice, judgement and any restricted content remain with the responsible human. |
| Lawyer | Perform the substantive analysis and decisions. Independently check any permitted supporting work and approve the exact output for its intended use. |
Checklist
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- 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.