Are installers contractors or are they employees? This question has puzzled many in this industry and it’s been hanging over the heads of independent retailers for years. The answer may finally be arriving, and it’s likely not going to be what many in this industry want to hear.
We had an opportunity to sit down with the man who has stayed on top of this issue for the long haul and has shed some new light on this whole question. That man is Jeff King, legal counsel for the World Floor Covering Association (WFCA). He discusses the Labor Department’s recent reinterpretation of who exactly qualifies as an independent contractor under the Fair Labor Standards Act. Using the Economics Reality test, King explains the prime deciding factors that reveal the department’s stance going forward—a stance that in reality says “most workers are indeed employees.” King also discusses the consequences of this interpretation, the potential cost to industry retailers and installers, and the actions the WFCA is taking to mitigate this situation.