Running a business? Do you have employees or do you claim to have independent contractors?
Well if it’s the later that are in your coterie, you need to read this.
(By the way, this is exactly why folks like you need to use our services. We have a series of actions that can make employees employees and contractors contractors.)
It seems that the NLRB (National Labor Relations Board) has overruled (13 June 2023) the the Trump Administration ruling (SuperShuttle Ruling) that overruled the rules that were previously obtaining since 2014. This new ruling returns to that 2014 FedEx ruling standards and the common law principles that SCOTUS (Supreme Court of the United States) ruled regarding employee status.
The main difference between the SuperShuttle Test and the FedEx test is to what extent “entrepreneurial activities” exist for the independent contractor. (Can this contractor hire its own staff? Does it work for multiple entities?)
When an employer delivers all the tools to complete a project, sets the schedule and deadlines, dictates the hours of availability- and restricts them for providing services for others- that means the individual is an employee not a contractor.
This is also not happening in a vacuum. The Department of Labor has issued standards using the Fair Labor Standards Act. This is expected to become law this year. IT focuses on the fact that while there are generally 5 factors that are used to discern if an individual is an employee or a contractor, there are two most critical issues: The core factors are the nature and degree of control over the work and the worker’s opportunity for profit or loss.
Note that this ruling is expected to reviewed by the Courts.
This has been an issue for so many years (I remember it from the 1970’s).
Me, too!