Description

The U.S. Department of Labor (DOL) announced on Jan. 9, 2024, the issuance of its final rule regarding whether a worker is an employee or an independent contractor under the federal Fair Labor Standards Act (FLSA). The rule change could have wide-ranging implications for employees, freelancers, and employers. Most broadly, the rule says a worker is not an IC if they’re economically dependent on an employer. From there, the rule establishes the six nonexclusive factors that must be analyzed to determine if a worker is an employee or IC under FLSA. The best advice for organizations is to consider employee status as the default classification when hiring. Organizations should only use the independent contractor classification after carefully analyzing the factors discussed across all applicable federal and state agency guidance. It is also essential to know that an individual cannot legally waive their employee status and choose to be classified as an independent contractor. The employer will ultimately pay for the misclassification, not the misclassified employee. This new rule is a good time for businesses to review their independent contractor relationships to ensure they comply and are not at risk for a misclassification determination.

Webinar Highlights:

• What the new federal regulations are about contractors, including the six elements the government considers in analyzing these relationships
• If you should classify a worker as an employee or independent contractor.
• What are the penalties and risks for misclassification?
• The difference between an independent contractor and an employee 
• How to draft contracts for independent contractors.
• Why the IRS and Department of Labor are targeting independent contractors.    

Why Should You Attend:

The laws governing independent contractor status are complex. Treating workers somewhat is often insufficient to ensure that a business satisfies the rules and tests to uncover misclassification. Time and money can be saved by involving competent employment counsel. Likewise, if a problem arises, do not avoid it. A business should promptly bring in legal counsel when faced with an audit or investigation to help find workable solutions.

Attendees will get details of the new federal regulations and history of contractors with the IRS and Department of Labor, as well as why misclassification can cost a company a lot of money in penalties in back taxes and overtime compensation. There will also be a discussion of how to draft contracts to increase the likelihood that the worker is a contractor and how to structure aspects of the relationship. There is also a debate about the difference between a 1099 employee and a W-2 employee.   

Who Should Attend:

• Business Owner/Manager
• Finance/Accounting Team
• Legal Counsel
• HR Professional