What’s happening: The US Department of Labor published a final rule, entitled Employee or Independent Contractor Classification Under the Fair Labor Standards Act, which goes into effect on March 11, 2024.

• This rule revises the Department’s guidance on how the agency determines who is an employee or independent contractor under the Fair Labor Standards Act (FLSA).
• AHCA/NCAL has provided a members-only summary (login required) with additional, vital information.

Zooming in: The final rule specifically rescinds the Independent Contractor Status Under the Fair Labor Standards Act rule (2021 IC Rule), that was published on January 7, 2021, under the Trump Administration, and essentially reverts to the agency’s earlier and broader multi-factor economic realities test.

• The new standard will, in certain circumstances, make it more difficult for long term care providers to properly classify a worker as an independent contractor.
• Likewise, this final rule has the potential to place greater financial and legal burdens on long term care providers as existing contract workers may now need to be reclassified as employees under the new standards.

Questions? Contact Dana Ritchie.