Navigating the New DOL Rule: Independent Contractor vs Employee Classification

Overview:

The U.S. Department of Labor (DOL) has recently issued a new final rule, effective March 11, 2024, clarifying the classification of workers as either employees or independent contractors under the Fair Labor Standards Act (FLSA). This rule aims to address the common issue of worker misclassification, which can deny employees important protections like minimum wage, overtime pay, and benefits.

The new rule introduces a "totality-of-the-circumstances" test, which examines six key factors to determine if a worker is economically dependent on a business or is truly in business for themselves. This test replaces the previous 2021 rule, providing clearer, more nuanced guidelines for businesses to follow. The changes particularly impact industries where independent contracting is prevalent, such as gig work, and could lead to significant financial consequences for companies that misclassify their workers.

Recent cases have shown that companies violating these rules can face costly penalties, including back wages and damages amounting to millions. For example, federal investigations have recovered over $7 million in damages from companies that misclassified employees as independent contractors, highlighting the importance of compliance.

In this webinar, participants will gain a deep understanding of the new DOL guidelines and how to safely navigate the classification of independent contractors to avoid legal risks and costly mistakes.

Areas Covered in the Session:

• The new DOL six factor test on Independent Contractors vs Employees
• IRS Common Law Rules Regarding Independent Contractors
• ABC Common Law Method
• Differences in Financial Obligations
• Consequences of Misclassifying Employees as Independent Contractors
• Independent Contractor Agreements
• Wha's Going to Get You in Trouble
• Action Items

Why Should You Attend?

Navigating the complexities of worker classification has become more challenging with the recent changes introduced by the Department of Labor. Misclassifying employees as independent contractors can result in substantial penalties, back wages, and legal consequences for businesses, as demonstrated by recent high-profile cases.

This webinar will equip you with the knowledge needed to comply with the latest DOL rules and avoid costly mistakes. You’ll gain insights into the new DOL "six factor" test and how it impacts the classification process. Additionally, you’ll learn strategies to structure independent contractor agreements and apply best practices that align with the new guidelines.

Who will benefit?

This webinar is essential for professionals across industries that rely on independent contractors, such as gig economy companies, staffing agencies, construction, healthcare, and IT services. It is especially relevant for those responsible for managing worker classification, contracts, and labor compliance, including

• Human Resources Managers
• Payroll Managers
• Compensation and Benefits Managers
• Legal Counsel/Advisors
• Compliance Officers
• Labor and Employment Attorneys
• Business Owners/CEOs
• CFOs and Financial Managers
• Operations Managers
• Staffing Agency Managers
• Gig Economy Platform Administrators
• Contractors and Subcontractors
• Risk Management Professionals
• Labor Relations Specialists
• Talent Acquisition Managers