New Independent Contractor Regulations

New Independent Contractor Regulations

The Department of Labor published a final rule defining “independent contractor” under the Fair Labor Standards Act (FLSA). This rule will go into effect on March 11, 2024.

According to the Wage and Hour Divisions statement on the DOL website, “This final rule will reduce the risk that employees are misclassified as independent contractors while providing a consistent approach for businesses that engage with individuals who are in business for themselves.”

How will the new independent contractor regulations impact your organization?

If your company is currently engaging ICs, you may have a massive project in the pipeline. Since the rule is changing the criteria used to classify an employee as an independent contractor, each contractor will need to be re-evaluated. To do this, a risk assessment should be run on each position.

Navigator Independent Contractor streamlines the way you classify an independent contractor’s status. This tool saves more than 90% of the time spent evaluating a contractor’s status when compared to the manual process (and a lot of billable attorney hours). Request a demonstration to prepare for this change and see Navigator IC in action.

Additionally, Littler has published an Insight that includes more information about the final rule: U.S. Department of Labor Finalizes Independent Contractor Regulation.

A note for our clients:

We are working closely with Littler to make the necessary updates to Navigator IC. We will let you know when the new regulations are ready to be used.

Don’t worry about the previous independent contractor risk reports that you have generated. You will be able to copy and re-run previously completed evaluations using the new regulations to create updated risk reports after Navigator IC is updated. Hopefully, this alleviates a bit of your stress related to this substantial change.

Above all, our goal is to simplify the complexity of employment law. So, if you have additional suggestions about how we can prepare you for this transition, please let us know.

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About ComplianceHR

ComplianceHR offers the only on-demand, intelligent suite of compliance applications. We help companies address the ever-changing federal and state employment law requirements. Our solutions cover many common HR topics, such as employee handbooks, minimum wage, overtime, independent contracting, and more.

We provide employers of all industries, sizes, and locations with solutions that empower employers to handle complex compliance issues. Our solutions take less time, cost, and complexity than traditional methods. The Navigator Suite simplifies employment law compliance, allowing you to streamline your compliance workflow in only a few simple clicks.

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