MBO Partners’ Post

🚨 New Rule Effective TODAY! 🚨 The Independent Contractor vs. Employee Classification just got clearer with the 2024 update. Unsure about the implications for your business and whether you're classifying talent properly? Our team of workforce solutions experts ensure you're on the right side of compliance and avoid costly penalties. https://buff.ly/3UUBRhE #WorkforceSolutions #EmployeeClassification #Compliance #IndependentContractor #FLSA #Staffing #Hiring

Independent Contractor or Employee: DOL’s New Classification Test   I have been talking about this issue for years. Almost every one of my clients agonizes over worker classification. Now, the U.S. Department of Labor (DOL) has implemented new regulations that make it clear that most workers would be classified as employees. The final rule is effective as of March 11, 2024 and supersedes all previous legislation, including the ABC test. It continues to affirm that a worker is not an independent contractor if the worker is economically dependent on an employer for work. The rule establishes a six-factor test for analyzing employee or independent contractor status under the FLSA. Read my latest blog for an outline of the rule and the questions you should be asking yourself to determine a worker’s classification status – link below: https://lnkd.in/g4sSutUN #employees #independentcontractor #employmentlaw

📣 Attention employers and contractors! Are you fully aware of the implications of employee misclassification under the new ruling that took effect on March 11, 2024? Despite the changes, I continue to see job postings that may not be in compliance. It's absolutely crucial to understand the distinction between employees and independent contractors to ensure you're following federal laws. Don't rely solely on contract language - regulatory audits can determine proper classification based on specific factors. Misclassification can lead to severe penalties, including hefty fines and potential legal action. The Final Rule highlights key considerations like legal compliance obligations and specialized skill requirements when evaluating contractor status. I've attached an article that not only outlines the new rules but also details the consequences of non-compliance. Stay informed and protect your business from costly missteps. As a consultant specializing in remote team development, I can help you navigate the nuances of the new ruling and ensure compliance. Proper worker classification is essential for companies building distributed teams. Reach out to discuss an assessment and ensure your remote workforce is structured compliantly. Let's work together to foster sustainable growth while mitigating risks. Contact me to learn more about crafting a tailored strategy for your business needs. #remoteteams #EmploymentLaw #ContractorsVsEmployees #ComplianceAwareness #IndependentContractors

Sharing this, in case you missed the new independent contractor regulations. If you're looking for a solution that balances compliance and flexibility, ShiftPixy might be the answer. Let's chat about how to navigate these shifts and ensure success for your business (or your career). https://lnkd.in/gPiUtcUQ #ShiftPixy #Employment #Compliance #WorkforceSolutions

Classifying workers correctly is more than just a box to check—it’s your shield against legal, financial, and reputational risks. With multiple federal and state laws to follow, it can be a challenge to ensure you are in compliance with the most current requirements and protecting your company. Does your company hire independent contractors? If yes, then follow the link to our blog! https://lnkd.in/g7wnqjnN #1099contractor #1099s #independentcontractors #humanresources #hrconsulting #hr #hrcommunity #hrcompliance

#WhatsupWednesday Let's talk about #independent #contractors for a moment... 💡 Did you know there was a new law going into effect March 11th? 💡 Does your team know the difference between how you can approach and independent contractor vs. a #fulltime #employee? 💡 Do your #supervisors know who on their teams are #contractors Utilizing #contractors is a SMART idea for any business, it lets you; ✔ Minimize overhead costs ✔ Flex your staff with peaks and valleys within your business ✔ Make sure candidates fit with the skill set, team, culture before hiring But a #goodpartner will always ensure you know the best way to engage contractors to keep your organization free from potential #liability. We can help with that. Check out a #snipit from a recent #SHRM article New Independent Contractor Rule SHRM (01/16/24) Maurer, Roy The U.S. Department of Labor’s new worker classification rule, which goes into effect March 11, with additional guidance forthcoming, could prompt businesses to move away from hiring gig workers and turn to staffing firms instead. “The new rules likely will increase the risk of using app-based job platforms that classify workers as independent contractors and are unlikely to have a significant impact on the traditional staffing industry, because the vast majority of temporary workers assigned by staffing firms are classified as W-2 employees and therefore would be unaffected by the rules,” said Ed Lenz, senior counsel at the American Staffing Association. Although it remains uncertain how the new rule will be interpreted by regulators and courts, Lenz said it would benefit the staffing industry if it is upheld and enforced in a way that favors W-2 employment status. Regarding online platforms, Lenz said, “The problem is with the relationship between the worker and the end user. The end user supervises the workers on a day-to-day basis, and supervision and control is the paramount—if not exclusive—test of whether someone is an employee or an independent contractor. It’s very unlikely that a lower-skilled service worker like a certified nursing aide could be treated under any analysis as an independent contractor. Someone is the employer and if it is not the platform, then it’s the end user.”

Does your business classify workers as independent contractors? If so, you may want to take a close look at whether those workers actually qualify for independent contractor status under the DOL's new rule. Late last week, the Department of Labor released its new rule, setting forth the test for determining independent contractor status. The DOL will apply a totality of the circumstances approach to determine whether workers are, "as a matter of economic reality, in business for themselves." The following six factors (and other unnamed factors) will be used to determine economic independence: 1. The worker’s opportunity for profit or loss; 2. Investments by the worker and the potential employer; 3. The degree of permanence of the relationship; 4. The nature and degree of the potential employer’s control over the work; 5. The extent to which the work is “integral” to the potential employer’s business; and 6. The worker’s skill or initiative. Do your classifications pass the test? Take a look at our blog post to find out more. #dol #hr #onboarding #flsa #wageandhour #employmentlaw #independentcontractor

Do you utilize independent contractors? Navigating the rules for engaging ICs can be daunting, especially when you operate in multiple jurisdictions and worker misclassification can lead to legal and financial penalties – here is how an #AOR can help: https://hubs.ly/Q01ZQ9t10 Innovative Employee Solutions #IES #AgentofRecord #EOR #GlobalEOR #EmployerofRecord #compliance #Misclassification #IndependentContractors #Employers #ICs #ICcompliance #HR #HumanResources

Do you utilize independent contractors? Navigating the rules for engaging ICs can be daunting, especially when you operate in multiple jurisdictions and worker misclassification can lead to legal and financial penalties – here is how an #AOR can help: https://hubs.ly/Q01ZQd3H0 Innovative Employee Solutions #IES #AgentofRecord #EOR #GlobalEOR #EmployerofRecord #compliance #Misclassification #IndependentContractors #Employers #ICs #ICcompliance #HR #HumanResources

Are you considering hiring an independent contractor to save time and money? Think again. Misclassifying workers can lead to hefty legal risks and financial liabilities. Read our article “Independent Contractors: Simple Staffing Option or Ticking Time Bomb?” for a deep dive into the risks and rules behind classification of employees: https://loom.ly/7O4nxZY #TalentAcquisition #LifeScienceRecruiting #EmployeeClassification #TheBioHireJournal