On January 9, 2024, the U.S. Department of Labor announced the issuance of a Final Rule that revises the framework for determining whether a worker should be classified an employee or an independent contractor under the federal Fair Labor Standards Act (FLSA). It is important for LeadingAge members to become familiar with the new regulations, and to analyze internal determinations about individuals’ classifications, to ensure compliance with the FLSA’s minimum wage and overtime pay protections that apply to employees. This LeadingAge article provides a high-level summary of the rule, and the Department has posted a Frequently Asked Questions resource addressing selected issues.
With this rule, DOL has rescinded a previously issued 2021 Independent Contractor rule, made changes to the factors that must be considered when making a classification, and returned to a “totality-of-the-circumstances” analysis, meaning that no one factor (or set of factors) is weighted more heavily than others. Many observers expect the new rule to result in more individuals being classified as employees than the 2021 rule might have done, and LeadingAge will continue to identify implications for providers and develop resources to support their members.
