Independent Contractor Laws to Change: Weigh In
Independent Contractor Laws may be changing. You have until December 13 to weigh in on the Department of Labor proposal.
At the core of the issue is whether someone needs to be paid as an employee for work performed or as their own company. Employees qualify for minimum wage, overtime pay, and other protections. Independent contractors do not.
The biggest changes rescind changes enacted in 2021 that weighs two factors in answering the employee-independent question. The first looks at how much control the individual has on the project. The other factor is the opportunity for profit or loss on the project.
Under the new proposal, the employer would look at all factors: skills needed, permanency of the position, who buys the equipment needed, and the work’s importance to the business. The full list can be found here.
One example of an industry expressing concerns is Financial Service Providers, who say their advisors often want to be independent contractors versus employees.
The gig economy is another industry impacted due to people working temporary assignments at the individual’s choice, such as food delivery.
