DOL’s Final Rule on Independent Contractor Classification – LTC Provider Impact

On January 10, 2024, the U.S. Department of Labor (DOL) published a final rule, entitled Employee or Independent Contractor Classification Under the Fair Labor Standards Act, that goes into effect on March 11, 2024. This rule revises the Department’s guidance on how the agency determines whether a worker is an independent contractor or an employee who would be entitled to minimum wage, overtime wages and other protections provided under the Fair Labor Standards Act (FLSA). It specifically rescinds the Independent Contractor Status Under the Fair Labor Standards Act rule (2021 IC Rule), that focused on two primary factors – the worker’s control over their work and opportunity for profit or loss – which was published on January 7, 2021, under the Trump Administration.  The new final rule essentially reverts to the Department’s earlier and broader multi-factor test which focused on the economic realities of a worker’s work relationship including whether the worker was dependent on the company for work. 

Overall, 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.  This final rule also has the potential to place greater financial and legal burdens on long term care providers who regular rely on workers classified as independent contractors as many existing contract workers may need to be reclassified as employees under the new standards. Doing so will require long term care providers to pay the workers as employees subject to minimum wage and overtime requirements and complying with all other federal, state and local laws and ordinances governing employee rights in the workplace. The AHCA/NCAL analysis of this rule can be found here.

Hear from legal experts on how the new final rule will impact your workplace as long term care provider, and get your pressing questions answered.

Learning Objectives

• Understand what this new final rule means to you as a long term care provider and how to limit potential risk for employee misclassification claims
• Understand how this new final rule differs from the guidance provided in the 2021 Independent Contractor Rule
• Learn more on the ongoing legislative efforts around worker classification issues
• Prepare to meet the compliance effective date

Presenters: 

Neville Bilimoria, Partner at Duane Morris LLP, Jennifer Long, Special Counsel at Duane Morris LLP, and Dana Ritchie, AHCA’s Assoc VP of Workforce & Constituency Services

COST: Free to AHCA/NCAL Member | $50 Non-members

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