Most businesses have a mix of employees — those with full benefits and protections — and independent contractors that make up their workforce. But a new law may mean employers now have more employees than they thought.
The U.S. Department of Labor has finalized the Biden administration’s worker classification rule, which will go into effect March 11. The rule tightens the definitions around what makes someone an employee versus an independent contractor, revising the 2021 rule, which made it easier for employers to label a worker as a contractor. Given that state data shows 10-20% of employers misclassify at least one employee at their company, this month may mark the perfect time to review these labels.
