
2024 IC Rule Change For Worker Classifications
On January 10, 2024, the Department of Labor (DOL) changed its guidelines on classifying independent contractors. The new guidelines are broader and vaguer than the ones from 2021, introducing significant ambiguity for those seeking to engage and hire 1099 contractors. Rather than emphasizing elements of control and autonomy, the focus of the new rule emphasizes economic dependency by determining whether a worker relies economically on a particular business. Despite facing legal challenges, the rule is set to become effective on March 11, 2024. Therefore, it is necessary for both businesses and contractors to familiarize themselves with the six factors of consideration proposed by the DOL.

Worker Classifications: Employees vs Contractors
Quick Review: Worker Classifications - Identifying W-2 Employees vs 1099 Contractors