Retirement Spotlight – Reminder Regarding Department of Labor Guidance on Independent Contractors

Independent Contractor Misclassification

The Department of Labor (DOL) Wage and Hour Division issued Administrative Interpretation No. 2015-1 in July, 2015, noting what the agency calls “misclassification of employees as independent contractors.” The issue is relevant in the retirement industry given the fact that independent contractors may establish employer-sponsored retirement plans, while employees may not. The issue of whether an individual is an employee or an independent contractor is not a new one, and there is a lengthy history of litigation in U.S. courts involving businesses that have mislabeled workers as independent contractors in order to limit their eligibility for employer-provided benefits, overtime pay, etc.

 

Read this full edition of Ascensus’ Retirement Spotlight here.