Remember that new independent contractor rule coming soon? It’s the one that makes it harder for businesses to call a worker a “contractor.” As a reminder, that big change kicks in March 11, 2024.
Why should you care?
- More workers might become employees. This means benefits like minimum wage, health insurance eligibility, paid time off, and overtime for some workers, but higher costs for businesses.
- Misclassifying workers can be costly. Lawsuits, back pay, and Department of Labor complaints add up fast.
- Getting ready takes time. Don’t wait until the last minute to scramble.
To-do list before March 11th:
- Businesses: Audit your contractors. See who might fall under the new “employee” definition.
- Update policies and procedures. Make sure everything lines up with the new rules.
- Train your managers. Help them understand the changes and avoid misclassifications.
- Seek advice from a lawyer or trusted advisor. Get expert guidance on navigating the new landscape.
- Be aware that workers will know their rights. Proactively understand if the new rule affects their work status and benefits.
The March 11th deadline is closer than you think! Get informed, be prepared, and make sure everyone’s ready for the big shift.
Related Reading:
Learn more about the new independent contractor rule
