Is anyone hearing any rumblings about the “new” (effective 3/2024) modifications for Dept. of Labor classification? In particular, one of the six factors is about “the extent to which the work performed is an integral part of the potential employer’s business” - and, Yes, we are BIs doing investigations for the various vendors that do investigations. I don’t want to upset the apple cart here, but, that has got to affect a lot of business relationships - I mean, a Real Estate agent’s business is selling real estate for a company that is ALL about selling real estate and on and on. In our situation, a ruling to be considered an Employee would change all of our agreements (and business model, in my opinion). I am not a labor attorney, but I hope that the companies that I have agreements with are figuring this out so that any change is not a negative one for me.
Do you have an article about this new law? Any information you can post would be helpful. I am an IC and am not aware of any of these changes.
Here are a few links that I found using Google -
Not allowing Independent Contractors to work for large companies has been a law in CA for at about 5 years, yet there are still background companies operating with IC’s in CA. How are they doing that you ask? They pay a yearly penalty to Uncle Sam. I wish the government’s “no IC initiative” was our caring government concerned about us being taken advantage of by mean employers.
Not allowing IC’s is government money grubbing at it’s finest by raking in yearly fines from employers. Lawsuits are still ongoing in other industries such as Uber etc. and they have probably figured fines into their yearly budget.
Another reason the government wants to end IC’s is because IC’s get tax breaks that regular employees don’t get. Making IC’s regular employees allows the government to tax the hell out of IC’s like the majority of the country. These people never stop.
In recent years, Uber and other app-based rideshare companies have been involved in a legal battle over whether their drivers are employees or independent contractors.
The state of California made headlines in 2020 by passing Assembly Bill 5 (AB5), a controversial law that made it significantly harder for employers to classify workers as independent contractors.
Less than a year later, California voters approved Proposition 22 (“Prop. 22”), which created an exemption to AB5 for Uber, Lyft, and other app-based ride-hailing services.
In 2021, a California state judge ruled Prop. 22 unconstitutional, but in 2023 a California appeals court overturned the bulk of that decision.
Although further legal challenges are likely, as of 2024 Uber drivers and other rideshare drivers in California are independent contractors, not employees.
Interesting take on the matter - WRT Calif. - I recall that Peraton wouldn’t have ind. contractors there and would constantly try to TDY employees for coverage. Another company only has “intermittent employees” in Calif. while having ind. contractors in other places. One of my “why are they doing this now?” thoughts is along the lines of a gov’t money grab for States to replenish the Unemployment funds after COVID. Any change could create a very different business model for us to deal with…