DOL Final Rule for Worker Classification: Impact on Retirement Plan Participation and Healthcare Coverage

Strafford

This CLE webinar will provide employee benefits counsel and employers guidance on the impact of the new DOL final rule regarding worker classification on retirement plan participation and healthcare coverage. The panel will discuss the new six-factor test for assessing employee versus independent contractor status, the impact on the ACA 50-employee threshold for small businesses' healthcare compliance requirements, avoiding misclassification with contractor-related language in employee benefit plans, and next steps for retirement plan sponsors.

Description

The misclassification of workers as independent contractors or employees can lead to adverse repercussions for companies that fail to classify their workforce accurately. Determining whether someone qualifies as an independent contractor or an employee is critical for companies in order to maintain compliance and avoid back taxes and penalties.

In addition to potential tax consequences, misclassifying workers exposes companies to legal action. As a result, the U.S. Department of Labor recently finalized rules providing an exhaustive six-factor test for assessing employee versus independent contractor status. This has a significant impact on healthcare coverage and retirement plan participation.

Employee benefits counsel must recognize the impact of the DOL final rule on healthcare and retirement plans, such as (1) navigating the ACA's 50-employee threshold and any shift in the number of workers classified as employees for small businesses' healthcare compliance requirements; (2) guarding against retroactive claims for benefits if there is a misclassification; and (3) the impact to retirement plans along with other key issues.

Listen as our panel discusses the ins and outs of worker classification in light of the DOL final rule and steps companies can take to avoid the harsh consequences of misclassifying employees.

Outline

1. The problem with misclassifying workers
2. New DOL final rule and challenges
3. The consequences of misclassifying employees
4. How the government detects worker classification violations
5. Avoiding the impact of worker misclassification violations in light of DOL final rule

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