New Rule for Classifying Workers

Will small businesses be able to hire independent contractors? Will gig workers continue to have control over their work arrangement? A proposed DOL rule, applicable to the Fair Labor Standards Act governing minimum wage and overtime rules, would dramatically change how workers are classified as employees versus independent contractors. The proposed rule is based on “totality of the circumstances.” It includes a new factor: whether the work is integral to the potential employer’s business. If yes, that tends to show the worker is an employee. Comments to the proposed rule may be submitted online until November 28, 2022. #IdeaoftheDay

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