Use Independent Contractors? There’s a New Rule Companies Must Follow

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  • 5/7/2024

Under the new rule, workers are not likely to be independent contractors if they're economically dependent on an employer for work.

Are you using owner operators or independent contractors (IC)? If so, there’s a new Department of Labor rule regarding the classification of employees that may have a substantial impact on your current operations.

The rule institutes a new six-factor economic reality test to determine whether a worker is classified as an independent contractor or employee. Under the new test, the worker is not likely to be an independent contractor if the worker is economically dependent on an employer for work.

How we can help

CLA recently released a new article detailing the new rule and what actions companies should take now in response. Reach out to your CLA team or our human resources consultants for assistance.

This blog contains general information and does not constitute the rendering of legal, accounting, investment, tax, or other professional services. Consult with your advisors regarding the applicability of this content to your specific circumstances.

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