Dept of Labor change on Independent Contractors

Major Dept of Labor rule change on the criteria that differentiates between employee and independent contractor.

https://www.nixonpeabody.com/insights/alerts/2024/01/16/dol-narrows-definition-of-independent-contractor

This new DOL independent contractor rule for 2024 adopts a six-factor test to determine whether a worker qualifies as an independent contractor. This test is similar to guidance issued and case law decided prior to 2021. The six factors are:

1. opportunity for profit or loss depending on managerial skill;

2. investments by the worker and the potential employer;

3. degree of permanence of the work relationship;

4. nature and degree of control;

5. extent to which the work performed is an integral part of the potential employer’s business; and

6. skill and initiative.

Video that explains it:

https://www.facebook.com/share/r/FB7fiHf8LFwmQKin/?mibextid=oFDknk

https://www.cnbc.com/2024/01/23/how-a-new-labor-department-rule-will-affect-independent-contractor-misclassification.html