Independent Contractor vs Exempt Employee: Navigating Key Differences 2024-25

Before former President (and now President-elect) Donald Trump left office in 2020, his administration passed a rule, somewhat narrowing the definition of who and what is an independent contractor – and then the Biden Administration withdrew that rule, rolling things back to the confusing place they were under the Obama Administration.

But then, due to a legal challenge the Trump Rule was reinstated – and then the Biden Administration implemented a “new” rule that took effect in March 11. That rule has itself the subject of legal challenges. If that’s not enough, with President Trump returning to the White House in January, his administration may roll back that rule. Are you dizzy yet? In this webinar we will sort that out and how, in the interim you can determine if your worker(s) is/are independent contractors or employees.

Many employers believe that if their employees agree to certain pay arrangements, or agree to be classified as independent contractors, then there is no violation of the law. This is not the case. Employees cannot agree to waive their rights under the Fair Labor Standards Act. For example, offering your employees time off or additional benefits in place of overtime pay is still an FLSA violation—even if your employees sign a written contract to that effect. The FLSA and only the FLSA determines the employer’s FLSA obligations.

In fact, even when an employee willingly goes along with, or even requests, an illegal pay arrangement s/he can still sue the employer for FLSA violations and recover any back pay he is owed under the law, in addition to keeping the extra pay and benefits he already pocketed under the illegal compensation system, and additional amounts in liquidated damages. If that’s not enough you may also be on the hook for your employees’ legal fees!

Session Highlights:

I. Intro- FLSA, Overtime, Records

II. Employee or Independent Contractor?

1. Definitions

a. Benefits

b. Risks

2. Tests

a. IRS Test

i. Right to Control

ii. Economic Realities

b. DOL Test

c. NLRB

d. Some State laws (including the “ABC” Test).

e. Trump Administration Rule and Biden Administration Rescission and “new” Rule.

And more!

Why You Should Attend:

Whether a worker is an independent contractor, or an employee is one of the most misunderstood areas in employment law, leaving businesses very vulnerable to fines, penalties and legal fees that can be staggering— particularly to smaller businesses. Businesses that try to escape payroll and other taxes in connection with their workers or providing workers’ compensation coverage and other benefits do so at their peril. Since this practice results in loss of significant sums of money to both the federal and state governments, the US Department of Labor has entered into agreements with many of its state counterparts to crack down on businesses that misclassify workers.

This webinar will provide valuable and practical insight on how to properly classify freelancers, consultants, temps and other contract workers—and how to tell whether the worker in question an employee is really. In this webinar, you will learn how and when your workers are legally your employees, or what be able to properly classify them as independent contractors. This topic is particularly timely considering the Biden Administration’s withdrawal of the rule promulgated by the Trump Administration.

Who Should Attend:

·         Business Owners

·         CEOs

·         CFOs

·         Controllers

·         H.R. Managers and Directors

·         Managers, Senior Managers

·         Hiring Managers

·         Anyone who deals with compensation issues

·         Compensation Officers

·         Benefits Administrators

·         HR Generalists

During the Q&A session following the live event, ask a question, and get a direct response from our expert speaker.

Important Notice for our “Live” Attendees: If you have enrolled in the “Live Webinar”, you will get your instruction kit before 24 hours of the live class.

For Recorded and E-transcript Participants: If you have signed up for the “Recorded” class or for the “E-transcript”, you will get access to the “Recording link” or the “PDF” within 24-48 hours of the live class.