New Changes following the Department of Labor’s Withdrawal of the Independent Contractor Rule

Course Description

Worker classification can be ambiguous and confusing. Classify your workers as independent contractors when they’re employees, and you’ll get hit with penalties. That’s why it’s important to stay up-to-date with the latest independent contractor guidelines like the withdrawal of the 2021 new DOL rule.

Correctly classifying your workers as employees or independent contractors impacts everything from taxes to benefits. Whereas employees are on your payroll, independent contractors are not. Contractors are responsible for paying their taxes and providing their benefits, like insurance. And, the Fair Labor Standards Act (FLSA) covers eligible employees—not contractors—under minimum wage and overtime laws.

California’s contractor laws state that an independent contractor is a person or business that provides a specific service to another company in exchange for compensation. California Assembly Bill 5, or AB 5, is a legislative act passed by Governor Newsom in September 2019. The new law was effective on January 1, 2020. AB 5 requires companies to reclassify independent contractors as employees with a few exceptions to the rule.

In 2018, the California Supreme issued a critical decision regarding the matter of Dynamex Operators West v. Superior Court of Los Angeles. The Supreme Court rejected a test determining whether to classify a worker as an independent contractor vs. employee known as the Borello test. Instead of the Borello test, an employee-friendly standard was adopted while ultimately upending the independent contractor market.

The most significant turn was how the Supreme Court incorporated a new standard that presumes all California workers are employees unless their employment meets specific criteria. The specific criteria are included in the newly accepted ABC test as a result of the Dynamex decision. Legislation and court rulings have reshaped California's worker classification landscape in an attempt to make compliance easier for employers.

In this practical CPE webinar speaker, Cynthia Flynn will discuss employee classification and the use of independent contractors in the age of AB5 and the Department of Labor’s most recent rulings in California State. 

Learning Objectives

• To identify the nuts and bolts of the ABC test under AB5.
• To recognize when a worker may meet an exemption under AB5 or AB2257.
• To discuss the impact of Proposition 22 on businesses in California State.
• To analyze the impact of the recent Department of Labor rule for classifying independent contractors under the Fair Labor Standards Act (FLSA).
• To develop an action plan to assess your business' compliance with AB5 and mitigate any risk.

Recommended For

• This Online CPE webinar is recommended for CPAs, CMAs, CEOs, CFOs, Business Owners, Business Managers, and Other Individuals interested in understanding the changes following the Department of Labor’s Withdrawal of the Independent Contractor Rule

Who Should Attend?

Webinar Qualifies For

• 1 CPE Credit for Certified Management Accountants (CMA)
• 1 CPE Credit of Business Law for Certified Public Accountants (CPA-US)
• 1 RCH Credit of California for Human Resource Certification Institute (HRCI) (Approval No. 595064)
• 1 PDC Credit for SHRM Professionals (Approval No. 22-XASHS)
• 1 CE Credit for Certified Fiduciary & Investment Risk Specialist (CFIRS)
• 1 CE Credit for Certified Wealth Strategist (CWS)
• 1 General Credit for Accountant/Bookkeeper (ACCT./BK)
• 1 RCH Credit for Fundamental Payroll Certification (FPC) (Approval No. 22CPE034)
• 1 RCH Credit for Certified Payroll Professional (CPP) (Approval No. 22CPE034)

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