Employee or Independent Contractor? Understanding Your Rights Under the FLSA

Understanding whether you are an employee or an independent contractor under the Fair Labor Standards Act (FLSA) is critical to knowing your rights and protections under the law. The U.S. Department of Labor has issued regulations (29 CFR part 795, effective March 11, 2024) to clarify how to determine a worker’s classification.

Why Does Classification Matter?

Employees are entitled to protections under the FLSA, including minimum wage, overtime pay, and other legal safeguards. Independent contractors, on the other hand, operate their own businesses and do not receive these protections. The key to classification lies in the economic reality test, which examines whether a worker is economically dependent on an employer or truly in business for themself.

The Economic Reality Test

The economic reality test consists of six key factors to determine whether a worker is an employee or an independent contractor:

  1. Opportunity for Profit or Loss Depending on Managerial Skill
  • Does the worker negotiate their pay, accept or decline work, or make independent business decisions?
  • If the worker’s earnings are dependent on their own business efforts, they are likely an independent contractor.
  • If the worker’s earnings rely on work assignments from the employer, they are likely an employee.

Example: A landscaper working for a company without control over assignments is likely an employee. A landscaper who markets their services, sets their own rates, and hires helpers is likely an independent contractor.

  1. Investments by the Worker and Employer
  • Are the worker’s investments capital or entrepreneurial in nature?
  • Employees typically do not make significant business investments.

Example: A graphic designer using company-provided tools is likely an employee. A designer who purchases their own software, markets their services, and rents office space is likely an independent contractor.

  1. Degree of Permanence of the Work Relationship
  • Continuous work relationships indicate employee status.
  • Project-based, non-exclusive work suggests independent contractor status.

Example: A cook working for the same venue every week is likely an employee. A cook preparing meals for different events and venues is likely an independent contractor.

  1. Nature and Degree of Control
  • Who determines schedules, pricing, work assignments, and supervision?
  • More control by the employer indicates employee status.

Example: A registered nurse with a fixed schedule and supervised work is likely an employee. A nurse who sets their own prices and works for multiple clients is likely an independent contractor.

  1. Extent to Which the Work Performed is Integral to the Employer’s Business
  • Is the work essential to the employer’s main business function?

Example: Farmworkers picking tomatoes for a tomato farm are likely employees. An accountant performing tax services for a farm is likely an independent contractor.

  1. Skill and Initiative
  • Is the worker using their skills in a way that demonstrates business initiative?

Example: A highly skilled welder following company instructions is likely an employee. A welder marketing their own specialty services and seeking clients is likely an independent contractor.

Other Things to Consider

  • No single factor solely determines a worker’s status, nor is any individual economic reality test factor—or combination of factors—more important than the others. Rather, the working relationship should be assessed based on the totality of the circumstances.
  • Titles and labels (such as “freelancer” or “contractor”) do not determine employment status.
  • Signing an independent contractor agreement does not automatically make a worker an independent contractor.
  • Receiving a 1099 form instead of a W-2 does not necessarily mean a worker is an independent contractor.
  • Factors like where work is performed or how a worker is paid do not solely determine classification.

Employer Responsibilities Under the FLSA

If a worker is classified as an employee, the employer must comply with the following FLSA requirements:

  • Minimum Wage: Employees must be paid at least $7.25 per hour (or the state/local minimum wage, if higher).
  • Overtime Pay: Employees must receive 1.5 times their regular pay rate for all hours worked over 40 per week, unless a relevant exemption applies.
  • Recordkeeping: Employers must maintain proper wage and hour records.
  • Retaliation Protections: Employees are protected from employer retaliation when asserting their rights.

Source: U.S. Department of Labor, Wage and Hour Division, Fact Sheet #13

Are You a Worker Who Has Been Misclassified?

Worker misclassification is a serious issue that can deny workers fair wages and benefits. If you believe you have been misclassified as an independent contractor, you may have legal recourse.

Free, No-Obligation Case Evaluation

At Kehoe Law Firm, P.C., we advocate for workers’ rights and fight for fair treatment under the law. If you have questions or suspect you’ve been misclassified, reach out to us for a free, no-obligation evaluation of your potential legal claims.

📞 Michael Yarnoff, Esq. – (215) 792-6676, Ext. 804
📧 Email: [email protected] | [email protected]

No-Cost Legal Assistance

Our class action legal services are provided on a contingency-fee basis, meaning you are not responsible for any fees or litigation expenses. 

SEND US A MESSAGE

Contact Us

ADDRESS

Kehoe Law Firm, P.C.
2001 Market Street
Suite 2500
Philadelphia, PA 19103

PHONE

Tel: 215-792-6676

EMAIL

[email protected]

Novo Nordisk Class Action Lawsuit (NVO)

Novo Nordisk investors should be aware that on January 24, 2025, a class action lawsuit was filed on behalf of all investors who purchased or otherwise acquired Novo Nordisk A/S (“Novo Nordisk”) (NYSE: NVO) securities between November 2, 2022, and December 19, 2024, inclusive (the “Class Period”). This lawsuit seeks to recover damages caused by Defendants’ alleged violations of federal securities laws.

What Can You Do if You Purchased or Acquired Novo Nordisk Securities During the Class Period?

If you purchased or otherwise acquired Novo Nordisk securities between November 2, 2022 and December 19, 2024 and suffered losses, you may be eligible to participate in this class action lawsuit.

Get More Information or Speak with an Attorney

To learn more about the class action lawsuit or to find out if you’re eligible to participate, please send us a message or contact Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], for a free, no-obligation evaluation of your potential claims.

Alternatively, you can email [email protected] or complete our online confidential Securities Class Action Questionnaire, and you will be contacted by a legal professional.

Class Action Allegations

The Novo Nordisk class action alleges that Defendants misled investors about the Phase 3 CagriSema obesity study, “REDEFINE-1.” The lawsuit claims that critical details about the flexible dosing protocol in the study were not disclosed to investors, including the fact that patients could adjust their doses during the trial. As a result, Novo Nordisk’s stock traded at artificially inflated prices during the Class Period.

On December 20, 2024, Novo revealed disappointing results from the REDEFINE-1 trial, revealing a 22.7% average weight loss instead of the anticipated 25% average weight loss for obesity patients treated with CagriSema in the study.

Following this announcement, Novo Nordisk’s stock price fell sharply by 17.83%, from $103.44 per share on December 19, 2024 to $85.00 per share on December 20, 2024.

To view the complaint, click Novo Nordisk class action complaint.

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff-side class action law firm specializing in securities fraud, breaches of fiduciary duties, and corporate misconduct. Collectively, the firm’s partners have served as Lead Counsel or Co-Lead Counsel in high-profile cases that have recovered more than $10 billion for both institutional and individual investors.

All legal consultations are completely free and with no obligation to pursue a case. Legal services are provided on a contingency-fee basis, meaning you are not responsible for any fees or litigation expenses.

 

SEND US A MESSAGE

Contact Us

ADDRESS

Kehoe Law Firm, P.C.
2001 Market Street
Suite 2500
Philadelphia, PA 19103

PHONE

Tel: 215-792-6676

EMAIL

[email protected]

Scam Alert: Beware of “QR Code” on Unexpected Packages

Scam Alert: QR Code on an Unexpected Package //

Imagine receiving an unexpected package addressed to you. Inside, there’s a note claiming it’s a gift, but it doesn’t mention who sent it. Instead, it asks you to scan a QR code to find out more or to get return instructions. While this might seem intriguing, it could be a tactic to steal your personal information.

If you’re confident it’s a genuine gift, you can keep it. However, be aware that such scenarios could involve a new variation of a brushing scam.

The Risks of Scanning Unknown QR Codes

Scanning the QR code might redirect you to a phishing website designed to harvest your sensitive information, such as usernames, passwords, or credit card details. Worse, it could install malware on your device, providing hackers with unauthorized access.

Steps to Take If You Scanned the QR Code

If you mistakenly scanned the QR code and provided your credentials, act quickly:

Monitoring and Safeguarding Against Identity Theft

If you suspect misuse of your personal information, follow these steps:

  1. Obtain your free credit report from AnnualCreditReport.com and review it for unfamiliar accounts or activities. Free weekly reports are available.
  2. Check your bank and credit card statements for unauthorized transactions.
  3. Consider additional measures to protect your identity, such as freezing your credit or placing a fraud alert on your report.

What to Do If Your Identity Is Compromised

If identity theft occurs, report the incident and create a recovery plan at IdentityTheft.gov.

Proactive Tips for Staying Secure

What About the Package?

By law, you are generally allowed to keep unordered packages as gifts. Learn more about your rights when you get unordered merchandise here.

Source: Consumer.ftc.gov

 

 


SEND US A MESSAGE

Contact Us

ADDRESS

Kehoe Law Firm, P.C.
2001 Market Street
Suite 2500
Philadelphia, PA 19103

PHONE

Tel: 215-792-6676

EMAIL

[email protected]

Regeneron Pharmaceuticals – Breach of Fiduciary Duties Investigation (REGN)

Kehoe Law Firm, P.C. is investigating whether certain executives or board members of Regeneron Pharmaceuticals, Inc. (“Regeneron”) (NASDAQ: REGN) breached their fiduciary duties and whether the company and its shareholders were harmed.

If you own Regeneron stock, you may have legal claims and be able to seek remedies for any misconduct by the company’s directors and officers.

To help us assess your legal options, please complete our securities questionnaire.

Alternatively, if you would like to discuss the investigation and your legal rights, click here to send us a message or contact Michael Yarnoff, Esq., at (215) 792-6676, Ext. 804, or by email at [email protected] or [email protected], for a free, no-obligation evaluation of your potential claims.

U.S. Department of Justice Sues Regeneron

On April 10, 2024, the United States Department of Justice (“DOJ”) announced it had filed a complaint under the False Claims Act (FCA) against Regeneron, a company which manufactures and sells Eylea, an anti-vascular endothelial growth factor inhibitor approved by the FDA to treat, among other conditions, neovascular Age-Related Macular Degeneration.

The DOJ complaint alleged that Regeneron fraudulently inflated Medicare reimbursement rates for Eylea by knowingly submitting false average sales price reports to the Centers for Medicare and Medicaid Services that excluded certain price concessions.

In particular, the DOJ alleged that Regeneron knowingly failed to report price concessions in the form of credit card processing fees Regeneron paid to specialty drug distributors to benefit its customers. According to the DOJ complaint, Regeneron paid these credit card fees so that distributors would accept credit cards for Eylea purchases while still charging a lower, cash price for the drug, and so that Regeneron’s customers — typically retina and ophthalmic practices — could receive credit card benefits for their purchases, such as “cash back” and other credit card rewards.

“The government alleges that Regeneron manipulated Medicare’s drug pricing process, by knowingly failing to report its payment of credit card processing fees as price concessions to its customers,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “By doing so, Regeneron greatly inflated the costs of its drug to Medicare over many years and enhanced its revenues. Falsely reported average sales prices cost the Medicare system hundreds of millions of dollars and we will make every effort to prevent such practices.”

Regeneron’s Q3 2024 Financial Results & Stock Drop

On the news of the DOJ lawsuit, Regeneron’s stock price dropped, and on October 31, 2024, Regeneron reported disappointing Q3 2024 financial results, reporting, among other things, that “[n]et product sales of EYLEA in the third quarter of 2024 were adversely impacted by a lower net selling price compared to the third quarter of 2023.” 

Kehoe Law Firm, P.C. is a leading, multidisciplinary plaintiff-side class action law firm committed to protecting investors from securities fraud, breaches of fiduciary duty, and corporate misconduct. The firm’s partners have collectively served as Lead Counsel or Co-Lead Counsel in high-profile cases that have secured over $10 billion in recoveries for both institutional and individual investors.

For more information, visit our website at Kehoe Law Firm, P.C.

Agenus Inc. (AGEN) Shareholder Derivative Lawsuit

Agenus Inc. Shareholder Derivative Complaint (AGEN) 

A shareholder derivative complaint was filed on January 15, 2025, against certain officers and directors of Agenus Inc. (NASDAQ: AGEN), alleging violations of state and federal law which occurred between January 23, 2023, and July 17, 2024. View the Agenus complaint.

If you own shares of Agenus, you may have legal claims against the company’s directors and officers.

To help us assess your legal options, please complete our securities questionnaire. Alternatively, if you would like to discuss the case and your legal rights, click here to send us a message or contact Michael Yarnoff, Esq., at (215) 792-6676, Ext. 804, or by email at [email protected] or [email protected], for a free, no-obligation evaluation of your potential claims.

Kehoe Law Firm, P.C. is a leading, multidisciplinary plaintiff-side class action law firm committed to protecting investors from securities fraud, breaches of fiduciary duty, and corporate misconduct. The firm’s partners have collectively served as Lead Counsel or Co-Lead Counsel in high-profile cases that have secured over $10 billion in recoveries for both institutional and individual investors.

For more information, visit our website at Kehoe Law Firm, P.C.

SEND US A MESSAGE

Contact Us

ADDRESS

Kehoe Law Firm, P.C.
2001 Market Street
Suite 2500
Philadelphia, PA 19103

PHONE

Tel: 215-792-6676

EMAIL

[email protected]