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Tag: Rule

DOL Proposed Rule Clarifying Test for Worker Classification

On September 22, 2020, the United States Department of Labor (DOL) released a long-awaited proposed rule (the “Proposed Rule”) providing guidance for determining employee versus independent contractor status under the Fair Labor Standards Act (FLSA).  For decades, employers have struggled with properly classifying workers, oftentimes resulting in substantial liability for, among other things, unpaid overtime and unpaid payroll taxes.  If adopted, the Proposed Rule may make it easier for employers to classify workers as independent contractors.

Background and the Need for Rulemaking

While the employee versus independent contractor debate has garnered significant attention over the years as more workers desire the flexibility that comes with contractor status, the DOL has never promulgated a formal regulation addressing the matter.  Instead, since 1954, the DOL has issued and revised guidance based upon a multifactor “economic reality” test, which focuses on the economic independence of the worker.  This evolving

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Contractors Seek Clarity On DOD Cybersecurity Rule

Law360 (September 29, 2020, 10:28 PM EDT) — Defense contractors are grappling with a new rule requiring them to implement cybersecurity programs that leaves crucial questions unanswered, including the exact information companies will be required to safeguard and how the new obligations will be worked into contracts.

The interim rule, formally published by the U.S. Department of Defense on Tuesday, explains how contractors will be assessed for compliance with the Cybersecurity Maturity Model Certification framework, the DOD’s plan that will eventually attach minimum cybersecurity requirements to all of its contract solicitations.

Improving cybersecurity standards across the DOD’s supply chain is intended to help better protect “controlled unclassified information” and…

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In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the

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DOD Rule Requires Contractors To Focus On Cybersecurity

Law360 (September 28, 2020, 10:25 PM EDT) — All defense contractors and subcontractors will be required to implement cybersecurity programs under a rule issued by the U.S. Department of Defense on Monday as part of a plan to attach minimum cybersecurity requirements to all Pentagon contracts.

The interim Defense Federal Acquisition Regulation Supplement rule broadly sets out the standards that contractors must meet to be certified under the Cybersecurity Maturity Model Certification framework, a pending overhaul to how the DOD handles cybersecurity across its procurements.

“CMMC is designed to provide increased assurance to the department that a [defense industrial base] contractor can adequately protect sensitive unclassified information such as…

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the

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New DOL Rule to Streamline Independent Contractor Analysis

The U.S. Department of Labor (DOL) has issued a new proposed regulation setting forth the proper standard for determining a worker’s status as an “independent contractor” under the Fair Labor Standards Act (FLSA).

According to the DOL, it issued the Notice of Proposed Rulemaking (NPRM) “to promote certainty for stakeholders, reduce litigation, and encourage innovation in the economy.” The new proposed regulation identifies two “core factors” that are the “most probative” and should be “afforded greater weight” in the analysis:

  1. “the nature and degree of the individual’s control over the work”; and

  2. the worker’s “opportunity for profit and loss.”

Three other factors are identified that the proposed rule affords lesser weight. Comments must be submitted by October 26, 2020, after which the DOL likely will issue a final regulation.

Background

The FLSA guarantees a minimum wage for all hours worked and overtime for any hours worked

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Labor Department Announces Contractor Rule

The U.S. Department of Labor announced a rule that would classify gig workers as contractors rather than employees, according to The New York Times (subscription).

The rule: The new rule identifies two main factors as determinants of whether a person should be classified as a contractor or an employee.

  • The first is how much a company controls the way a worker performs his or her job.
  • The second is how much a worker can profit based on initiative, as opposed to earning a steady salary regardless of performance.

The upshot: The rule could likely shift the employment status of millions of Americans, including many in manufacturing. If they use contractors, companies do not have to pay the minimum wage, overtime, a portion of social security taxes, or unemployment insurance and workers’ compensation insurance.

A word from the NAM: “When finalized, the rule could solidify the use of independent contractors, including

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Proposed Federal Rule Would Define Employee vs. Independent Contractor – Drivers

Driver or owner-operator? A proposed federal rule would help clarify the definition. - Photo: Con-way Truckload

Driver or owner-operator? A proposed federal rule would help clarify the definition.

Photo: Con-way Truckload

The U.S. Department of Labor announced a proposed rule that aims to clarify who’s an employee and who’s an independent contractor under the Fair Labor Standards Act, which could be good news for some trucking companies using owner-operators.

The proposed rule adopts an “economic reality” test to determine a worker’s status as an FLSA employee or an independent contractor. The test considers whether a worker is in business for himself or herself (independent contractor) or is economically dependent on a putative employer for work (employee).

In its Notice of Proposed Rulemaking, the department points out, “the multifactor test [for determining independent contractor status under the FLSA], as currently applied, has proven to be unclear and unwieldy.”

“The department’s proposal aims to bring clarity and consistency to the determination of who’s an independent contractor under the

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The Importance of Complying With the EPA’s Renovation, Repair, and Painting (RRP) Rule

Last year, the Environmental Protection Agency completed implementation of the Renovation, Repair, and Painting (RRP) Rule, which requires builders and remodeling contractors to comply with strict lead containment requirements. Remodelers must test for lead paint if they are disturbing an area greater than six square feet in a home, school, or child care facility built before 1978. If lead paint is detected, builders must comply with stringent health safety requirements and file a great deal of paperwork and documentation that must be kept for three years. Enforcement of the RRP Rule began on October 1st 2010 after being delayed due to pressure from the construction industry. Builders who fail to meet or ignore the safety requirements could be subjected to fines of up to $37,500 per day per violation. Small remodeling companies simply cannot risk incurring such a devastating cost. Despite this, there is still a lot of confusion among … Read More