McNees Minute: Worker Classification

Sponsored Content: McNees Minute

Austin W. Wolfe, Esq. – 717-237-5455

Since President Biden took office in January, his administration has been pushing to reshape the way companies classify their workers.  Almost immediately, the Biden team halted a proposed Trump-era rule that would have made it easier for companies to classify workers as independent contractors.  The Biden Administration is poised to issue regulations that would continue to reverse the prior administration’s trends, and the Department of Labor is shaping up to take a more active role in enforcing worker misclassification issues.  This may make it more difficult for businesses to rely on independent contractor work, and more workers would be entitled to the legal protections provided to employees under the law, including things like overtime, workers’ comp, and anti-discrimination protections.  And as the administration looks to add mandatory paid leave to that list, the penalties for misclassifying a worker could be costly.  This is a good time for employers of all sizes to take a close look at how they are classifying their workers to ensure compliance with this changing legal landscape.

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