--saves overtime and minimum wage protections applied to employees, not independent contractors.  So if an individual is considered to be an independent contractor, they are not entitled to be paid overtime compensation for hours worked over 40 in a workweek.

To determine whether an individual is an independent contractor, courts typically apply what is referred to as the economic realities test.  And under that test, the courts analyze the following factors.  One, the degree of control exercised by the alleged employer.  Two, the extent of the relative investment of the worker and the alleged employer.  Three, the degree to which the worker’s opportunity for profit and loss is determined by the employer.  Four, the skill and initiative required in performing the job.  Five, the permanency of the relationship; is it temporary or is this a continued relationship?  And six, the extent to which the worker’s services are a necessary and integral part to the employer.

Courts typically conclude that if two or more of the factors I just read to you offer evidence against the existence of an employer/employee relationship, that individual will likely be considered to be an independent contractor; and therefore, not entitled to overtime compensation.  But if the individual is found to be an employee, they are likely gonna be required to be paid for their hours wormed over 40 as overtime compensation.