Latest Labor Law Changes (Yes, Again!) – What You Need to Know
There is yet another change to worker classification labor laws that will impact the events industry and affect many businesses with contingent workers. While leveraging independent talent can help organizations maximize budgets, misclassifying workers can have significant financial and legal costs. But don’t worry! There’s good news for organizations in the events space. We break down the latest for you – here are the quick-hit key points you need to know:
What’s the latest?
Updates on the U.S. Department of Labor’s worker classification under the Fair Labor Standards Act will go into effect starting March 11, 2024, to determine whether workers are considered employees or independent contractors.
The new rules will take a closer look than before at the distinction between how a worker is categorized in relation to their employer: contract, independent worker, part-time, full-time, temporary, on-call, or volunteer.
The distinguishing factor of worker classification will be economic dependence, or how reliant a worker is economically on the employer or business. There will be a stricter criterion for workers to be classified as independent contractors.
Find more information on the ruling here.
What does this mean for my org?
According to the global Ceridian 2023 Executive survey: 65% of surveyed companies reported they plan to increase reliance on contingent workers within the next two years and 80% reported already using contingents.
If you are among the many companies who already use contingent workers or plan to, you will likely be impacted by the latest rule changes. 30% of employers misclassify workers.
Misclassification can be costly to your organization financially, legally, and reputationally. If you misclassify workers, you could be liable to backpay wages and taxes, penalty costs, and potential lawsuits.
What to do?
Don’t let compliance get in the way of the many benefits of leveraging agile talent! Partner with experts like Soundings who can mitigate risks and ensure compliance for you. We developed a solution for hiring independent talent that handles all compliance matters amid labor law changes on your behalf – so you don’t have to.
Visit our trusted compliance resource page for labor law updates and helpful resources here.
Classifying workers shouldn’t get in the way of your business this year! Soundings eliminates the guesswork and takes care of all compliance matters for you so you can focus on what matters most. Schedule a call with our team today to review if your company is compliant or find out how to be!