Hey Compliance Warriors!
On June 7, 2017 the Department of Labor ( DOL ) made a big announcement regarding two very hot topics! Read on…
WASHINGTON – U.S. Secretary of Labor Alexander Acosta today announced the withdrawal of the U.S. Department of Labor’s 2015 and 2016 informal guidance on joint employment and independent contractors. (Letter Numbers 2015-1 and 2016-1)
Removal of the administrator interpretations does not change the legal responsibilities of employers under the Fair Labor Standards Act and the Migrant and Seasonal Agricultural Worker Protection Act, as reflected in the department’s long-standing regulations and case law.The department will continue to fully and fairly enforce all laws within its jurisdiction, including the Fair Labor Standards Act and the Migrant and Seasonal Agricultural Worker Protection Act. News Release: 06/07/2017 Release Number: 17-0807-NAT
What does this mean for you – the employer?
Well, you could totally disregard everything said in both of these letters. Or, you can continue to follow the guidance understanding that the job of the DOL is to protect the worker and employers still bear the burden of proof when allegations are waged.
These two letters were quite strict and should still be taken seriously in order to establish reasonable basis for every decision you make regarding non-employee or contract workers. The full guidance from the 2015-1 letter is still in HelpDesk Compliance Tool-Kit for Payroll Professionals and will remain as a source of best practices. You can find more on the 2016-1 letter HERE.
Until Next Time, Be Audit-Secure!
Lisa Smith
