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Now in Effect: DOL Final Rule on Classification of Independent Contractors

Client Alert

Effective March 11, 2024, the U.S. Department of Labor (DOL) has adopted a new standard for the classification of employees versus independent contractors — a much anticipated update since the DOL issued its Final Rule on January 9, 2024, as previously discussed by BMD

In brief, the Fair Labor Standards Act (FLSA) creates significant protections for workers related to minimum wage, overtime pay, and record-keeping requirements. That said, such protection only exists for employees. This can incentivize entities to classify workers as independent contractors; however, misclassification is risky and can be costly. 

New guidance requires the use of a six-factor totality-of-the-circumstances analysis to determine whether the economic realities of the working relationship favor classification as an employee or an independent contractor. Put simply, and per the DOL, if the economic realities demonstrate that the worker is economically dependent on the entity for work, then the worker is an employee. Conversely, if the economic realities demonstrate that the worker is in business for themselves, then they are an independent contractor. 

In making this determination, entities are now required to consider, without limitation: (1) a worker’s opportunity for profit or loss depending on managerial skill; (2) investments by either the entity and/or the worker; (3) the degree of permanence in the working relationship; (4) the nature and degree of control; (5) whether the work performed is integral to the entity’s business; and (6) the skill and initiative required for the work. 

In light of the new guidance, now is a great time for entities to review their working relationships and stay ahead on classification issues to avoid liability under the FLSA.

For additional information on the new DOL guidance or how it may impact your company, please reach out to Monica Andress at (330) 253-9153 or, or any member of the Labor and Employment Team of Brennan, Manna & Diamond LLC.

Chemical Dependency Professionals Board Rule Changes: Part 2

New rule changes for Certification of Chemical Dependency Counselor Assistants (CDCA)

Board of Pharmacy Rule Changes

Board of Pharmacy made changes to rules effective on March 4, 2024

Counselor, Social Workers, and Marriage and Family Therapist (CSWMFT) Board Rule Changes

The Counselor, Social Workers, and Marriage and Family Therapist (CSWMFT) Board has proposed changes to the Ohio Administrative Code rules discussed below. The rules are scheduled for a public hearing on April 23, 2024, and public comments are due by this date. Please reach out to BMD Member Daphne Kackloudis for help preparing comments on these rules or for additional information.

Latest Batch of Ohio Chemical Dependency Professionals Board Rules: What Providers Should Know

The Ohio Chemical Dependency Professionals Board recently released several new rules and proposed amendments to existing rules over the past few months. A hearing for the new rules was held on February 16, 2024, but the Board has not yet finalized them.

Florida's Recent Ruling on Arbitration Clauses

Florida’s recent ruling on arbitration clauses provides a crucial distinction in determining whether such clauses are void as against public policy and providers may have the opportunity to include arbitration clauses in their patient consent forms. On March 6, 2024, Florida’s Fourth District Court of Appeals reversed and remanded Florida’s Fifteenth Circuit Court ruling of Piero Palacios v. Sharnice Lawson. The Court of Appeals ruled that the parties’ arbitration agreement did not contradict the Legislature’s intent of Florida’s Medical Malpractice Act (the “MMA”), but rather reflects the parties’ choice to arbitrate claims entirely outside of the MMA’s framework. Therefore, the Court found that the agreement was not void as against public policy.