FLSA Rules Changed for Independent Contractor Status on March 11th 2024

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On March 11, 2024, the 2021 Independent Contractor Rule ends, and the FLSA Rules Change, making it more challenging to classify individuals as contractors. PS: the first federal lawsuit against this was file don Jan 16 so stay tuned!!!
The official website and "final rule" information can be found at this website www.federalreg...
The Department of Labor's Application of the Economic Reality Test
(1) the extent to which the services in question are an integral part of the `employer[']s' business;
(2) the amount of the so-called `contractor's' investment in facilities and equipment;
(3) the nature and degree of control by the principal;
(4) opportunities for profit and loss; . . .
(5) the amount of initiative judgment or foresight required for the success of the claimed independent enterprise[;] and
[(6)] permanency of the relation.”
The guidance cautioned that no single factor is controlling, and “ordinarily a definite decision as to whether one is an employee or an independent contractor under the [FLSA] cannot be made in the absence of evidence as to [the worker's] actual day-to-day working relationship with [their] principal. Clearly a written contract does not always reflect the true situation.”
Source:
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2 окт 2024

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Комментарии : 14

@annmarieknapp 8 месяцев назад

Over 55% of people work a side hustle. This will stick it to a lot of people. I anticipate these companies will hire some full time and then immediately lay them off.

@managertrainingtopics 6 месяцев назад

I believe what you are saying is that people are working side hustles (part-time jobs) but are being paid cash vs a paycheck. Is that right? If that is the case, the companies were already breaking the law. Full time and part time employees, even if just occasionally working (not consistent schedules) always must be paid at an hourly rate and overtime over 40 hours per work week. With that said, you can 100% work (legally) as an independent contractor to a business as a side hustle - in the past and now. The companies who hire you just need to follow the laws. Side hustles can be business to business (your independent contractor services to the company that needs your services), or part time hourly employees. It is all about how the company treats your relationship. I hope this helps.

@truckerron 7 месяцев назад

WE *NEED* a Trucker Strike, NOW!!! ALL Trucks *STOP* Running.

@managertrainingtopics 6 месяцев назад

To me, it is the companies who are taking advantage of the drivers. This new law, while not clear cut (aka: confusing for drivers), clarifies that they now have to pay them according to FLSA laws (overtime included) or backup and leave the driver in charge. With that said, the trucking industry is fighting for more clarification. At this time, if you are a W2 employee, nothing changes. If you truly are an independent contractor (even as an Owner Operator) for the companies you work with, those companies need to be flexible and look at all 6 factors. I found a great article for truckers here, which goes through each of the 6 factors. www.truckinginfo.com/10213395/new-rules-on-independent-contractors-could-affect-truckings-owner-operator-model

@StillAngel-fs2qk 8 месяцев назад

I get paid daily will that stop?

@managertrainingtopics 7 месяцев назад

This law change has nothing to do with the days they pay you. That’s a company policy.

@Topo-l4z 8 месяцев назад

None of the sand and water haulers in the oilfield will pass this test.

@managertrainingtopics 7 месяцев назад

Some industries do have their own special laws and so it may not affect it that much. TBD.

@indo3052 7 месяцев назад

Im assuming this wont affect leaase operators at mega carriers in trucking

@managertrainingtopics 6 месяцев назад

The trucking industry is fighting for more clarification. At this time, if you are a W2 employee, nothing changes. If you truly are an independent contractor (even as an Owner Operator) for the companies you work with, those companies need to be flexible and look at all 6 factors. I found a great article for truckers here, which goes through each of the 6 factors. www.truckinginfo.com/10213395/new-rules-on-independent-contractors-could-affect-truckings-owner-operator-model “This rule is not intended to disrupt the businesses of independent contractors who are, as a matter of economic reality, in business for themselves,” said the Department of Labor in its final rule.

@indo3052 6 месяцев назад

@@managertrainingtopics leasing within the trucking industry is big. But I don't see how many get away with it when technically they are just employees. Driving the employees trucks, under the DM of the employer, can't use the truck on the spot market, their company rules, etc

@managertrainingtopics 6 месяцев назад

@@indo3052 I agree with you, many companies are currently taking advantage of people (who should be employees with benefits, unemployment /taxes paid, etc) - hence the law changes. Many are probably doing it per law as well.