Workers Poised to Get Benefits as Rule Creates ‘Employees’ (1)

The Department of Labor’s new rule making it harder to classify workers as independent contractors may mean more employers will be compelled to provide costly benefits like health care and paid leave.

The rule (RIN 1235-AA43), which takes effect March 11, officially only covers the status of workers under the Fair Labor Standards Act governing such factors as minimum wages and overtime. But the real-world spill-over effect is likely to mean businesses will move to treat more workers as nonexempt employees for wage and hour purposes, and for other purposes such as benefits, tax withholding, and anti-discrimination laws, ...