The U.S. Department of Labor’s new Fair Labor Standards Act rules, scheduled for March 11, 2024, may prompt businesses to reclassify
independent contractors as employees. Designating an individual as an employee under one body of law, such as the FLSA, can prompt questions
of whether that person is also an employee under other bodies of law, such as the Internal Revenue Code and the Employee Retirement Income Security Act. Because worker misclassification can unleash a torrent of IRC and ERISA compliance problems, employers should take a holistic approach to ensure that worker status is documented, determined consistently, and compliant with employment laws, tax codes, and ERISA.
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