New independent contractor rule signals a busy year for compliance

The U.S. Department of Labor recently announced a final rule that aims to clarify when a worker qualifies as an employee or an independent contractor under the Fair Labor Standards Act (FLSA). The long-awaited rule kicks off a year in which legal experts expect HR leaders to increasingly focus on compliance issues.

According to a DOL press release, the new rule, which became effective Jan. 11, “provides guidance on proper classification and seeks to combat employee misclassification,” which the DOL says can impact workers’ right to minimum wage and overtime pay, as well as facilitate wage theft and harm competition. READ MORE