New DOL Rule Changes Definition Of IC Status: What Matters for Your Enterprise 

From MBO Partners, this article discusses the new rule after briefly reviewing some of the history.

Key Points

  • The economic realities test is the test for determining if a worker is an employee or independent contractor.
  • The new independent contractor rule, that goes into effect on March 11, 2024, sets forth 6 factors to be considered.
  • When evaluating a compliance vendor, taking into account their policies, procedures, and readiness to discuss changes such as this recent ruling are of paramount importance.

On January 9, 2024, the United States Department of Labor (DOL) announced its final rule on determining whether a worker is an employee or independent contractor under the Fair Labor Standards Act (FLSA) purposes. The rule is effective on March 11, 2024, and rescinds the existing rule developed by the previous administration that has been in effect since 2021. The new rule says that several factors will be considered, and that the totality of the circumstances will determine the classification.

Read the full story at New DOL Rule Changes Definition Of IC Status: What Matters for Your Enterprise – MBO Partners

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