Is That Worker Still an Independent Contractor? New Rule Goes into Effect

March 29, 2024

A new rule from the U.S. Department of Labor is broadly expected to result in more workers being classified as “employees” under the Fair Labor Standards Act (FLSA). Although the final rule faces challenges in court, employers should be prepared for the rule on independent contractor classification to go into effect March 11, 2024. Employers should review their relationships with workers currently classified as independent contractors to determine if they should be re-classified as employees. Misclassification could result in significant liability for unpaid wages (including unpaid overtime), employee benefits, and unpaid employment and other taxes.

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