Charles J Read is a CPA, USTCP, author of The Payroll Book: A Guide for Small Businesses and Startups, and the Founder of GetPayroll.
The U.S. Department of Labor (DOL) has proposed new rules — for comment by the public — that change the definition of what constitutes being an independent contractor. The gig economy continues to force administrative, legislative and judiciary modifications to keep up with the changing economy. The rules are intended to simplify the determination of who is an independent contractor and who is not.
The DOL estimates that more than half of adult workers will be affected by these rules over their working careers. It also estimates savings for employers and independent contractors will be close to a half billion dollars a year. Although the reality may be that the new rules don’t save employers any money, they will shake up the whole classification process.