Bass, Berry and Sims attorneys Hunter Yoches and Mary Leigh Pirtle’s article, “Contingent Workforce: Implications of DOL’s Final Rule on Employers,” was published in the March 2024 issue of HR.com’s HR Legal & Compliance Excellence Magazine.
The article discusses the Final Rule on contingent worker classification under the Fair Labor Standards Act and how this designation affects a variety of industries.
Hunter and Mary Leigh share insight into the use of contingent workers in widespread industries and their important contribution to the workforce saying, “In addition to driving up costs to recruit a full-time employee, the inability to fill key roles leaves opportunities for contingent workers.”
The attorneys share that the evolution of the Independent Contractor Rule has brought about the six-factor economic realities test to determine independent contractor designations. They make sure to clarify that, “While the adoption of this Final Rule will be a sigh of relief as compared to an ABC test, businesses should be mindful that state laws will continue to apply with respect to state wage-and-hour laws.”
Hunter and Mary Leigh establish a set of takeaways for readers including identification of businesses and markets that will be affected by the Final Rule, liability under FLSA for misclassifying workers and the benefits of proactive audits to avoid misclassification.
To view the full article, you may click here.