Wednesday, November 18, 2009

Independent contractor status determined by economic reality

A recent Fifth Circuit opinion reverses summary judgement in favor of the employer against the claims of cable splicers who asserted they were not paid overtime as required by the Fair Labor Standards Act [FLSA]. The district court granted summary judgement after finding the cable splicers to be independent contractors, not employees. The per curium opinion concluded that cable splicers who worked on a steady and reliable basis over a substantial period of time exclusively with the defendant were sufficiently economically dependant upon the alleged employer to be employees, not independent contractors.