Coming Soon: IC and OT Regulatory Changes
It appears we are all going to be busy with regulatory changes this year! But don’t worry – we will be here to help you. The two primary updates that are slated for this year are the final rule on Employee/Independent Contractor Classification and a Notice of Proposed Rulemaking for the Overtime Rule/White Collar Exemptions. What does this mean?
Employee/Independent Contractor Classification
Last October, the U.S. Department of Labor released a proposed rule to update the test for determining whether a worker is an employee or an independent contractor. The proposed rule defines “employee” and “independent contractor,” sets forth a six-factor test, and notes additional factors that may be relevant. For a more in-depth explanation, check out Littler’s ASAP “Department of Labor Proposes New Rule for Independent Contractor Status.”
Once the rule is final, the ComplianceHR team will be working with Littler to determine the updates that need to be made to Navigator Independent Contractor and will let you know when the updates are complete. Our goal will be to update Navigator IC as quickly as we can while making sure all updates align with the new rule.
Overtime Rule/White Collar Exemptions
The U.S. Department of Labor has set August 2023 as the potential release date for the proposed new overtime rule. The DOL, however, has not announced the changes they are expecting to make to the overtime regulations, which implement the exemption of executive, administrative, and professional employees from the FLSA minimum wage and overtime requirements. The proposed rule expected next month will shed light on the changes. We will continue to monitor this, and once a final rule is available, we will work with Littler to update Navigator Overtime. We will continue to keep you updated.
If you’re a client and would like to learn more about Navigator IC or Navigator OT, be sure to check out our Live Open Office Hours. You can sign up for these live trainings in the Knowledge Center. For questions, please don’t hesitate to reach out to us at email@example.com.
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