Employee Benefits: DOL Rules for Worker Classification, Key Employer Considerations

BARBRI

This CLE webinar will provide employee benefits counsel and employers guidance on navigating DOL rules regarding worker classification on retirement plan participation and healthcare coverage. The panel will discuss the six-factor test for assessing employee vs. independent contractor status, the tests used by the IRS and the potential impact on the ACA 50-employee threshold for small businesses' healthcare compliance requirements, avoiding misclassification with contractor-related language in employee benefit plans, the potential unintended adverse consequences of such language, and next steps for retirement and other 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. The U.S. Department of Labor rules provide an exhaustive six-factor test for assessing employee vs. independent contractor status for FLSA purposes. This will likely have a significant impact on healthcare plan coverage and retirement plan participation.

Employers and their counsel must recognize the impact of the DOL rules 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 under the DOL rules and steps companies can take to avoid the harsh consequences of misclassifying employees.

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