Q: Did the U.S. Department of Labor (DOL) change how independent contractors are classified, and if so, what does this mean for my company?
A: Potentially. On October 11, the DOL announced a proposed new standard for determining whether a worker is an employee or an independent contractor under the Fair Labor Standards Act. The new rule classifies workers using six non-exhaustive factors: (1) the worker’s opportunity for profit and loss; (2) the employer and the employee’s investments; (3) the degree of permanence of the working relationship; (4) the nature and degree of the worker’s control over the work; (5) the extent to which the work is integral to the employer’s business; and (6) the worker’s degree of skill and initiative.
Continue Reading DOL Proposes New Standards on Independent Contractor Classification