The U.S. Department of Labor (DOL) has announced it will issue a proposed rule under the Fair Labor Standards Act (FLSA) on the misclassification of employees as independent contractors. Public forums will be held in June on those who may be affected by employee or independent contractor classification. An employer forum will be held June 24, and a worker forum will be held June 29. We've gathered articles on the news from SHRM Online and other outlets.
Why the Rule Matters
Under the FLSA, employees are entitled to minimum wage, overtime pay and other benefits. Independent contractors are not entitled to such benefits, but they generally have more flexibility to set their own schedules and work for multiple companies. A Trump administration rule still in effect has made it easier for employers to classify workers as independent contractors rather than employees than it had been prior to the rule.
Employers Hesitant to Provide Gig Workers with Health Care
Though independent workers often receive health care from an entity other than the businesses they engage with, health care has been the top benefit these workers cite as likely to motivate them to work for a company. However, many businesses remain hesitant to offer benefits to independent workers because of the legal risk of creating an employment relationship if they pay for benefits.
Trump Administration Rule Is in Effect
During the Trump administration, the DOL issued its rule on independent contractors on Jan. 7,...
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