A rule that applies “economic realities” to determining whether a subcontractor is an independent contractor or employee may be back on the table for contractors.
In early 2021, the Department of Labor under the Trump administration attempted to give employers more certainty about determining the status of employees as independent contractors or employees under the Fair Labor Standards Act. The Biden administration rescinded this rule in its entirety.
However, on March 15, Judge Marcia A. Crone of the U.S. District Court in Eastern District of Texas reinstated that independent contractor rule. In this Legal Insights episode, Trent Cotney, partner at Adams and Reese, goes over what contractors need to know about this rule and how it affects their business.
“This doesn’t necessarily apply nationwide, although I do anticipate a lot of people relying on this,” he said.
Contractors will also want to hear what Cotney has to say about preparing their tax documents this tax season this year. Cotney says there are also important tax credits related to COVID-19 contractors can take advantage of, while those who took out additional PPP loans need to file them properly.
Watch the video here, or for the podcast version, visit our W&C podcast page.