PART 795—EMPLOYEE OR INDEPENDENT CONTRACTOR CLASSIFICATION UNDER THE FAIR LABOR STANDARDS ACT Authority: 29 U.S.C. 201-219. Source: 89 FR 1741, Jan. 10, 2024 § 795.100 Introductory statement. This part contains the Department of Labor's (the Department) general interpretations for determining whether workers are employees or independent contractors under the Fair Labor Standards Act (FLSA or Act). See 29 U.S.C. 201-19. These interpretations are intended to serve as a “practical guide to employers and employees” as to how the Department will seek to apply the Act. Skidmore Swift & Co., § 795.105 Determining employee or independent contractor classification under the FLSA. (a) Relevance of independent contractor or employee status under the Act. (b) Economic dependence as the ultimate inquiry. § 795.110 Economic reality test to determine economic dependence. (a) Economic reality test. (2) The six factors described in paragraphs (b)(1) through (6) of this section should guide an assessment of the economic realities of the working relationship and the question of economic dependence. Consistent with a totality-of-the-circumstances analysis, no one factor or subset of factors is necessarily dispositive, and the weight to give each factor may depend on the facts and circumstances of the particular relationship. Moreover, these six factors are not exhaustive. As explained in paragraph (b)(7) of this section, additional factors may be considered. (b) Economic reality factors Opportunity for profit or loss depending on managerial skill. (2) Investments by the worker and the potential employer. (3) Degree of permanence of the work relationship. (4) Nature and degree of control. (5) Extent to which the work performed is an integral part of the potential employer's business. (6) Skill and initiative. (7) Additional factors. § 795.115 Severability. If any provision of this part is held to be invalid or unenforceable by its terms, or as applied to any person or circumstance, or stayed pending further agency action, the provision shall be construed so as to continue to give the maximum effect to the provision permitted by law, unless such holding shall be one of utter invalidity or unenforceability, in which event the provision shall be severable from this part and shall not affect the remainder thereof.