Two weeks ago, the Insights Association brought to light a very important issue regarding how research participants are classified according to labor laws. This topic is of paramount importance, so we wanted to make sure our Rockstars are up to date as well.
The U.S. Department of Labor (DOL) has proposed new rules to the Fair Labor Standards Act (FLSA) (also documented by the Insights Association!) which could spell trouble for market research agencies. These additional rules could make it more likely that research participants would be classified as employees of the research incentives, as market research agencies could be required to pay research participants classified as employees minimum wage in lieu of incentives.
The Insights Association’s Senior VP of Advocacy, Howard Fienberg, brought this issue to light across the greater Market Research and Insights profession and urged the Department of Labor that research participants be classified as independent contractors. As part of their official comments on the Department of Labor proposal, the Insights Association stated the following:
“Research subjects receiving incentives are not employed by the organization or
company conducting the research — they are, if subject to any legal status at all,
independent contractors; accordingly, they should be recognized as such. Their
participation is completely voluntary, and they may opt out at any time.”
Comments on the Department of Labor proposal have been extended through December 13th, 2022. We highly encourage market research professionals to submit their own comments, and more information on how to do so can be found here. We also encourage all Research Rockstars to read Howard Fienberg’s submitted comments, which can be found here. As of the writing of this article, no official judgment has been made. Rest assured, though, that the Insights Association will continue to advocate for market researchers and participants alike to advance the Market Research & Insights profession.
