Employee or Independent Contractor? What to Do in the Wake of the Recent Rule Changes
Duration: 90 Minutes
78 Days Left To REGISTER
Id: 210693
Janette S Levey
Overview
Before Donald Trump left office, his administration passed a rule, somewhat narrowing the definition of who and what is an independent contractor - and then the Biden Administration withdrew that rule, rolling things back to the confusing place they were under the Obama Administration. Many employers believe that if their employees agree to certain pay arrangements, or agree to be classified as independent contractors, then there is no violation of the law. This is not the case. Employees cannot agree to waive their rights under the Fair Labor Standards Act. For example, offering your employees time off or additional benefits in place of overtime pay is still an FLSA violation-even if your employees sign a written contract to that effect.
The FLSA and only the FLSA determine the employer's FLSA obligations. Even when an employee willingly goes along with, or even requests, an illegal pay arrangement s/he can still sue the employer for FLSA violations and recover any back pay he is owed under the law, in addition to keeping the extra pay and benefits he already pocketed under the illegal compensation system, and additional amounts in liquidated damages. If that's not enough you may also be on the hook for your employee's legal fees!
Whether a worker is an independent contractor or an employee is one of the most misunderstood areas in employment law, leaving businesses very vulnerable to fines, penalties, and legal fees that can be staggering-particularly to smaller businesses. Businesses that try to escape paying payroll and other taxes in connection with their workers, or providing worker's compensation coverage and other benefits do so at their peril.
Since this practice results in the loss of significant sums of money to both the federal and state governments, the US Department of Labor has entered into agreements with many of its state counterparts to crack down on businesses that misclassify workers.
Areas Covered in the Session
- Intro - FLSA, Overtime, Records
- Employee or Independent Contractor?
- Definitions
- Benefits
- Risks
- Tests
- IRS Test
- Right to Control
- Economic Realities
Who Will Benefit
- HR Managers
- HR Directors
- Department Heads and Supervisors
- Owners and Managers of Small Businesses
- HR professionals
- HR Administrators
- Compliance Professionals
- Senior Managers
- CEO's
- CFO's
- Controllers
- Payroll/Compensation Officers
- In-House Counsel
Speaker Profile
Janette works with employers on most employment law issues, to ensure that employers are in the best position possible to avoid litigation, audits, employee relations problems, and the attendant, often exorbitant costs. Janette has written articles on many different employment law issues for many publications, including EEO Insight, Staffing Industry Review, @Law, and Chief Legal Officer.
Janette has served on the Workplace Violence Prevention Institute, a multidisciplinary task force dedicated to providing proactive, holistic solutions to employers serious about promoting workplace safety and preventing workplace violence. Janette currently serves as an Advisory Board Member for Child and Family Resources of Morris County, New Jersey.
Janette has also spoken and trained on topics, such as Criminal Background Checks in the Hiring Process, Joint Employment, Severance Arrangements, Addressing and Preventing Employee Leave Abuse, Pre-Employment Screening among many, many others.
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