The DOL indicated the final rule aims to reduce the risk of employees being misclassified as independent contractors . Importantly , the final rule does not impact the analysis for employee classification in other contexts — such as under the IRS code or state law . •
U . S . DOL ENACTS ITS NEW INDEPENDENT CONTRACTOR GUIDELINES excerpt summary from Armstrong Teasdale Law Firm
The U . S . Department of Labor ( DOL ) has enacted its final rule ( as of March 11 ) revising its analysis of independent contractor status under the federal Fair Labor Standards Act ( FLSA ). What do these revisions do ? They invoke a six-factor analysis that focuses on determining whether , as a matter of economic realities , a worker is dependent on the employer for work . The six-factor test is summarized in the below :
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 . 6 . Skill and initiative .
We would encourage you to consult your attorney or read further analysis at www . armstrongteasdale . com / thought-leadership / u-s-department-of-laborissues-new-independent-contractor-regulations /
The DOL indicated the final rule aims to reduce the risk of employees being misclassified as independent contractors . Importantly , the final rule does not impact the analysis for employee classification in other contexts — such as under the IRS code or state law . •
26 KANSAS INSURANCE AGENT & BROKER