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Independent Contractors | What You Need to Know About the New Rule

In October, the Department of Labor proposed a new rule regarding and the misclassification where it creates a lower standard for employee classification, which will ultimately result in more current independent contractors being able to receive benefits, rights, and the title of employees.  Topics will include:

  • Independent Contractor Agreements
  • What is “control”?
  • Gig Economy Impact
  • How to Handle Government Audits
  • Wage & Hour Litigation Pitfalls

In recent times, the debate surrounding “independent contractors” has gained significant traction, especially with the Department of Labor’s new rule. This rule addresses the longstanding issue of misclassification, which many argue has deprived a vast number of workers of the rights and benefits they duly deserve. Historically, classifying workers as independent contractors rather than employees allowed companies to bypass certain financial and legal responsibilities, often to the detriment of those providing the labor.

This proposed rule introduces a lower standard for employee classification. In layman’s terms, it is now easier to qualify as an employee rather than an independent contractor. This shift is monumental. It means that a significant number of current independent contractors could soon wear the badge of ’employee,’ a title that not only offers recognition but also tangible benefits. We’re talking about health benefits, overtime, minimum wage guarantees, and other protections under labor laws.

For many, this move by the Department of Labor is seen as a step in the right direction. It acknowledges the changing dynamics of the modern workforce and ensures that workers, irrespective of their titles, receive the rights they justly deserve.

The HR RoundTable

The HR RoundTable has been bringing HR leaders together to discuss important topics related to Human Resources for over 20 years. Thanks to our extensive network of partners in employment law; workforce development; diversity, equity and inclusion; workplace safety; insurance; and other human resources specialties, we have been fortunate to provide our HR network with actionable information they can use to improve their business process.