Final Ruling on Independent Contractors

Employers must be able to correctly determine who qualifies as an employee or independent contractor and the Department of Labor has published a final rule on January 10, 2024, to help employers make this distinction. In addition, a compliance guide is available for small employers.

The final rule provides six factors that businesses should consider when determining the workers status. These factors are:
(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.
 
No one factor or subset of factors determines if a worker is an employee or independent contractor. Rather, all the circumstances of the relationship should be examined. For a copy of the guidelines or more information, send your request to [email protected]