The article discusses the new rule under the Fair Labor Standards Act, effective March 2024, for determining if a worker is an independent contractor. It introduces the "economic realities test," which assesses factors like profit or loss opportunities, investments, work permanence, control degree, work's integral nature to the business, and the worker's skill. The article emphasizes the importance of correctly classifying workers to avoid legal issues and maintain work quality, particularly in industries like construction. It advises seeking professional guidance to navigate these regulations.
Business Law Blog
The Importance Of Properly Classifying Employees
Misclassifying workers as independent contractors can put your business in serious legal jeopardy and cost you thousands in penalties.