Independent Contractors or Employees? What to Know About the July 1st Law Change

Organizations are fueled by people. Certain businesses rely on independent contractors (also known as 1099s) to help get work done. These individuals can range from bookkeepers who produce reports to IT teams that are engaged for computer issues. 

Unfortunately, management’s intent in classifying workers is largely immaterial for purposes of liability. Employee classification is a fact-intensive analysis that requires compliance with both federal and state requirements. Earlier this year, the Department of Labor (DOL) announced that it plans to rescind the 2024 Independent Contractor Rule (still in effect) that governs the classification of workers on the federal level.