The Department of Labor (DOL) recently updated their guidance on the classification of employees vs. independent contractors under the Fair Labor Standards Act (FLSA). While employers are still required to properly classify their workers, these updates may provide some employers with more flexibility.
In short, the DOL removed guidance from 2014, and replaced it with guidance from 2008. The FLSA 2008 guidance omits the indication that “most workers are employees.” It lists determination factors which the Court has considered significant.
If you are unsure about employee vs. independent contractor classification, and are subscribed to our HR tools and services, you have access to an Independent Contractor Classification Toolkit. The toolkit guides you through the process of accurately and completely identifying all factors relevant to the assessment of whether a worker may be treated as an independent contractor for payroll tax and/or wage-hour purposes. It also provides clear explanations of applicable tests, the significance of each element of the business/worker relationship, and a fillable form to document and record all pertinent data and assessments.
To access the toolkit, simply log into the HR platform, click Search, under Compliance, and then click the Classification icon. Follow the text link (Independent Contractor Classification Tool) to find the toolkit. Don’t forget, you also have access to live HR consultants and online support.
To subscribe to our HR tools and services, please contact us right away. We’ll discuss your business and HR needs and help you get started with the tools and services you need.