What to Know About the Independent Contractors Final Rule

Last month, the U.S. Department of Labor published a final rule, entitled Employee or Independent Contractor Classification Under the Fair Labor Standards Act, which takes effect March 11, 2024. This rule revises the department’s guidance on how the agency determines who is an employee or independent contractor under the Fair Labor Standards Act (FLSA). It specifically rescinds the Independent Contractor Status Under the Fair Labor Standards Act rule (2021 IC Rule), that was published January 7, 2021, and essentially reverts to the agency’s earlier and broader multi-factor economic realities test.

The final rule will, in certain circumstances, make it more difficult for LTC providers to properly classify a worker as an independent contractor. It also has the potential to place greater financial and legal burdens on LTC providers as existing contract workers may now need to be reclassified as employees. 

AHCA/NCAL created a summary for members to provide additional, vital information. (AHCA/NCAL member log-in is required to view the summary; click here if you have not yet set up your login.) Contact Dana Ritchie with questions or comments about the summary.