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Most employers are at least aware of the issue of independent contractor versus employee. But making the determination has never been clear. The Department of Labor issued a final rule clarifying the standard for independent contractor versus employee under the Fair Labor Standards Act (FLSA). That may sound encouraging, but it is doubtful that the rule consisting of more than 1,200 pages makes the designation any easier. In reality, the rule only clarified the factors to consider that are still open to interpretation. The effective date of the final rule was March 8, 2021. Why does this designation make a difference? There is a financial incentive to declare a worker an independent contractor. But declaring one independent does not make it so—under the law. If a worker is deemed to be an independent contractor, the employer is not required to […]

Scenario: Sally and Steve Mooney started Weacrematieu Cremation and Funeral Services 25 years ago. Located in the heart of a popular tourist area in the Southeastern United States, the local population continues to expand as jobs are readily available and the cost of living reasonable. Weacrematieu has experienced significant growth each year in the number of families it serves, which has created challenges for Sally and Steve in terms of hiring licensed qualified staff and creating attractive benefit programs to retain them. It has been difficult to find employees who see working at Weacrematieu as a “calling” rather than just a “paycheck.” To encourage employees to have long-term vision, some of the benefits require employees to be employed for extended periods prior to qualification, such as the retirement plan. Sally has created an employee handbook that provides a summary of […]