Spring is looking like it will be a busy time for regulatory changes this year. But don’t worry - we will be here to help you! Two important items slated for May are the final rule on Employee/Independent Contractor Classification and a Notice of Proposed Rulemaking for the Overtime Rule/White Collar Exemptions. Let’s take a quick look at what these mean.
Employee/Independent Contractor Classification
Last October, the U.S. Department of Labor released a proposed rule to update the test for determining whether a worker is an employee or an independent contractor. The proposed rule defines “employee” and “independent contractor,” sets forth a six-factor test, and notes additional factors that may be relevant. For a more in-depth explanation, check out Littler’s ASAP “Department of Labor Proposes New Rule for Independent Contractor Status.”
Once the rule is final, we will be working with Littler to determine the updates that need to be made to Navigator IC, and will let you know when the updates are complete. Our goal will be to update Navigator IC as quickly as we can while making sure all updates align with the new rule.
Overtime Rule/White Collar Exemptions
The U.S. Department of Labor has not announced the changes they are expecting to make to the overtime regulations, which implement the exemption of executive, administrative, and professional employees from the FLSA minimum wage and overtime requirements. However, the proposed rule expected in May will shed light on the changes. We will continue to monitor this, and once a final rule is available, we will work with Littler to update Navigator OT. We will continue to keep you updated.
If you'd like to learn more about Navigator IC or Navigator OT, be sure to check out our Live Open Office Hours. For questions, please don’t hesitate to reach out to us at support@compliancehr.com.