Tim Coffield | United States v. Silk: Six-Factor Economic Realities Test For Differentiating Between Employees and Independent Contractors

In United States v. Silk, 331 U.S. 704 (1947), the Supreme Court applied a multi-factor test for determining whether workers were independent contractors or employees. The case is important because, inter alia, these “Silk factors” came to be applied in cases under the Fair Labor Standards Act to determine whether the economic realities show that workers are “employees” for purposes of the FLSA’s minimum wage and overtime requirements, or “independent contractors” not protected by these requirements. 

Statutory and Regulatory Background

The FLSA requires covered employers to pay minimum wages and overtime compensation to certain categories of employees. 29 U.S.C §§ 206-207. The FLSA also imposes recordkeeping requirements on employers. 29 U.S.C. § 211. These requirements raise questions about what it means to be an “employer” or an “employee,” and, more specifically, about the nature of the employment relationship that falls within the scope of the FLSA’s minimum wage and overtime requirements. 

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