Instructor
Bob McKenzie
On February 26, 2026. The Department of Labor released its highly anticipated proposal that should modernize the approach to determining whether a worker is an independent contractor or employee.
The proposal is now in the 60-day comment period so it is anticipated to become effective on or shortly after April 26, 2026. The proposed rule will rescind the department’s 2024 final rule and will make it easier to differentiate between employees and contractors.
However, it is important to note that the IRS has its own rules as do many states using the ABC test. So when using an independent contractor, you must be in compliance with these regulations as well as the one issued by the Department of Labor.
The new regulations are still using the “economic reality” test to determine whether the worker is in business for him-or herself or economically dependent on the employer for work. In addition, the new regulations identify two “core factors” to determine independent contractor status. They are: The degree of control the employer has over the work and the opportunity for the contractor to make a profit or loss. There are other factors to consider, but the core factors are given preference.
This webinar will give participants the information they need ensure independent contractors actually qualify as such. Failure to do your own analysis or misclassifying someone as an independent contractor who should be an employee can result in millions of dollar fines and back pay.
After going through this webinar, participants will know:
