Do you engage contract workers? Get ready for a major shift in U.S. labor laws.
The upcoming federal legislation emphasizes a strict approach to defining independent contractors versus employees and has significant implications.
Companies must take immediate action, including the following:
Conduct an Internal Audit: Review existing contractor relationships for possible reclassification.Understand the Criteria: Familiarize yourself with the six factors of the economic reality test.
Consult Experts: Seek legal advice regarding labor law implications.
Anticipate Increased Costs: Budget for additional expenses associated with employee benefits and responsibilities.
Redirect Resources: Adjust internal processes for increased employee count, including payroll and benefits.
Revamp Business Model: Restructure operations, especially if reliant on independent contractors.
The Bottom Line
This is not just a change – it’s a revolution in how businesses in the United States must operate. It’s a big deal. Huge. The good news is you don’t have to navigate these turbulent waters alone. We are equipped to help you navigate these monumental changes.