Credit: Vitalii Vodolazskyi/stock.adobe.com
The U.S. Department of Labor is changing its rule for determining whether a worker is an independent contractor or an employee, potentially resulting in hundreds of thousands of dollars in penalties for an employer caught asleep at the wheel.
The new rule, which goes into effect on March 11, uses a six-factor balancing test to determine a worker's status. It will replace the current rule emphasizing two core factors: control over the work performed and the worker's opportunity for profit or loss.
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