New Department of Labor Guidance on Classifying Independent Contractors
By Sharon Tasman Prysant | July 17, 2015 at 11:22 AM EDT | No Comments
The U.S. Department of Labor is cracking down on companies that are improperly and/or intentionally classifying employees as independent contractors. On July 15, 2015, the DOL issued an Administrator's Interpretation which significantly broadens the classification of "employees" and narrows the definition of "independent contractors."
Under the new interpretation, it will be important for companies to look at the true nature of the work, level of supervision/autonomy and economic dependence of individuals classified as independent contractors. Performing a proper analysis, and having appropriate independent contractor agreements will be more crucial than ever before.
We will be providing a more detailed analysis of the new guidance shortly. You can read a full text of the Administrator's Interpretation here.