Employee or Contractor?

Classifying workers is an important issue for employers and as of March 11, 2024, a new rule from the Department of Labor became effective. Certain tests help regulating agencies analyze worker classification issues.  Factors of the final rule to determine if the worker is an employee or contractor are the following;
 (1) opportunity for profit or loss depending on managerial skill;
(2) investments by the worker and the potential employer;
(3) degree of permanence of the work relationship;
(4) nature and degree of control;
5) extent to which the work performed is an integral part of the potential employer’s business; and
(6) skill and initiative.
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Misclassification can be costly to employers that may result in penalties, back taxes and wages.  For more information and guidance, contact [email protected]