The ATA Chronicle - May/June 2024 - 29

BUSINESS PRACTICES by Ben Karl and Danielle Maxson
as employees. Worker
classification is a key area of
ATA's advocacy, as well as an
important consideration for
running a language services
business. Our goal is to keep
ATA members abreast of any
developments.
The following concerns a
recent development at the
federal level and a new, final
rule that took effect on March
11, 2024. All ATA members
who are independent
contractors should learn more
and take any needed steps to
help ensure they're classified
the way that makes sense for
them and how they work.
Recent Independent
Contractor Classification
Rule Changes and What
They Mean for Translators
and Interpreters
Here are some insights from ATA's Advocacy and Business Practices
Education Committees regarding the U.S. Department of Labor's final rule
regarding worker classification under the Fair Labor Standards Act (FLSA).
Employee or
Independent Contractor?
In recent years, many
professions with a high
number of independent
contractors, the language
services industry included,
have been rocked by the
passage of oftentimes
problematic legislation
aimed at imposing rules to
determine whether workers
are truly independent
contractors or whether
they should be classified
New Independent
Contractor Test
under FLSA
The FLSA is a federal
law that provides certain
protections for employees
that independent contractors
are not entitled to, such as
minimum wage and overtime
pay. The Department of
Labor's new rule outlines
a six-factor test for
determining whether a
worker is an employee or an
independent contractor under
the FLSA. The six factors are:
1
Opportunity for
Profit or Loss
Depending on Managerial
Skill: For example: Can you
prove you have negotiated
the amount of compensation
and deadline(s) for your
services? Do you spend
money on equipment to
run your business or on
marketing or other efforts to
grow your business?
This column is not intended to constitute legal, financial, or other business advice. Each individual or company should make its own
independent business decisions and consult its own legal, financial, or other advisors as appropriate. The views expressed here are not
necessarily those of ATA or its Board of Directors.
www.ata-chronicle.online
American Translators Association 29

https://www.dol.gov/sites/dolgov/files/WHD/legacy/files/FairLaborStandAct.pdf http://www.ata-chronicle.online

The ATA Chronicle - May/June 2024

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