Credit: Vitalii Vodolazskyi/stock.adobe.com New Test for OT Eligibility Rife With Land Mines for Employers
With the new independent contractor standard, the U.S. Department of Labor is "essentially putting their thumb on the scale to encourage a finding of employment," Baker & Hostetler partner Todd Lebowitz said.
February 28, 2024 at 07:06 AM
5 minute read
Labor Law
What You Need to Know
- Misclassifying a worker as an independent contractor is one of the key reasons employers fail to pay overtime.
- In first three weeks of February, the DOL hit 24 employers for overtime violations totaling $8 million.
- The more complicated rules for classifying workers kick in March 11.
The U.S. Department of Labor is changing its rule for determining whether a worker is an independent contractor or an employee, potentially resulting in hundreds of thousands of dollars in penalties for an employer caught asleep at the wheel.
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