Premier Directional Drilling appealed a ruling that classified five workers as employees under the Fair Labor Standards Act (FLSA). The Fifth Circuit Court of Appeals reversed the decision, finding the workers were independent contractors because they controlled how they performed their work and could accept or reject projects. The court emphasized that control only matters when it affects a meaningful part of the business. This case is critical for subcontractors because it clarifies when you can be classified as an independent contractor versus an employee, which affects wage, overtime, and benefits obligations.
Document your control over work methods and project selection—keep records showing you decide how to perform tasks and can turn down jobs
Similar job duties to employees don't automatically make you an employee; what matters is whether you control meaningful aspects of the work