The Department of Labor (DOL) has changed its enforcement position on independent contractor classification under the Fair Labor Standards Act (FLSA). Its Wage and Hour Division (WHD) is no longer enforcing the most recent independent contractor rule, even though that rule technically remains in place.

Instead, investigators are applying the earlier economic reality test described in Fact Sheet #13 (2008) and Opinion Letter FLSA2019-6. That test asks whether a worker is economically dependent on the employer or in business for themselves, looking at factors such as the employer's control, how permanent the relationship is and the worker's chance of profit or loss.

This 60-minute webinar explains what the shift means for employers, the tools to use when classifying workers, how freelancers may respond and what legal developments to watch.

WHY SHOULD YOU ATTEND?

The return to the broad economic reality test is widely seen as more employer friendly and may lead more businesses to classify workers as contractors. No new legal duties have been imposed, but the DOL is awaiting ongoing litigation and considering rule changes.

Employers still need to judge how workers actually function in the job, not just what contracts, job descriptions or titles say. This session suits employers, business owners, leadership, compliance and HR professionals, and managers.

AREA COVERED

• How the change in independent contractor vs employee enforcement affects employers
• Tools employers can use to classify their workers
• How freelancers may adapt when starting contracts with employers
• Which change will affect employers the most
• The rule's six non-exhaustive factors for the independent contractor analysis
• Legal cases expected to emerge from the change
• The most effective way to meet compliance expectations
• What the economic reality test is and how workers will be classified going forward

LEARNING OBJECTIVES

• Explain how the DOL's enforcement shift changes the classification landscape for employers
• Use the economic reality test to assess whether a worker is an employee or contractor
• Describe the six non-exhaustive factors in the independent contractor rule
• Identify the changes most likely to affect your organization
• Anticipate how freelancers and legal cases may respond to the change
• Apply practical methods to meet compliance expectations

WHO WILL BENEFIT?

• All Employers
• Business Owners
• Company Leadership
• Compliance Professionals
• HR Professionals
• Managers/Supervisors