Independent Contractor vs Employee-New Rule Issued by The Department of Labor

The Department of Labor recently released its final rules on Independent Contractors vs Employees. Here are a few headlines to be aware of.

US Department of Labor recovers $532K in back wages after employer misclassifies them as contractors.

A federal investigation has recovered $113,613 in back wages and liquidated damages from a New York City hotel management company that denied employees their full-earned wages, including overtime, by misclassifying many of the affected workers as independent contractors.

A federal court in Virginia has entered a judgment ordering a Norfolk-based medical staffing agency, which intentionally violated federal laws by classifying their workers as independent contractors and denied employees their rightfully earned overtime wages, to pay more than $7.2 million in back wages and liquidated damages. As you can see, violating the law regarding independent contractors can be very expensive.

Don't become one of those companies that is forced to pay hundreds of thousands or millions of dollars because they did not know the rules.

After going through this webinar, participants will know:

• The new rules the Department of Labor will use to determine employee vs independent contractors
• The new guidelines are the safest way to use independent contractors
• What to include in independent contractor agreements

• 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
• What's Going to Get You in Trouble
• Action Items

The rule aims to reduce misclassification, ensuring workers receive proper wages and benefits while providing clarity for businesses. It particularly impacts gig workers, freelancers, and industries relying on contract labor. Employers must review their worker classifications to stay compliant and avoid potential legal risks.