What Business Owners Need to Know About the New FLSA Independent Contractor Rule
New Department of Labor regulations may change how you classify workers. Understand the six-factor test to avoid costly misclassification penalties.
Get It Right. Avoid Misclassification Penalties.
The Department of Labor's new independent contractor rule introduces a comprehensive six-factor test based on economic dependence. Misclassifying workers—even unintentionally—can result in fines ranging from $5,000 to $25,000 per violation, plus back wages, unpaid payroll taxes, and potential legal action.
This guide breaks down each of the six factors so you can classify workers correctly and protect your business from compliance risks.
What You'll Learn:
- The Six-Factor Test Explained – Understand profit and loss opportunity, worker investments, relationship permanence, employer control, work essentiality, and worker skill and initiative.
- Real-World Examples – See how the DOL evaluates scheduling, supervision, worker restrictions, and other everyday business decisions.
- Employee vs. Independent Contractor Indicators – Learn which factors suggest an employee relationship and which support independent contractor status.
- How the DOL Applies the Rule – Discover why no single factor determines classification and how the DOL reviews all factors together to make a final decision.
- Compliance Action Steps – Get clear guidance on reviewing your current worker classifications and ensuring your business meets the new standard.
Download Your Free FLSA Independent Contractor Guide Now
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The Cost of Getting Classification Wrong.
Worker misclassification isn't just a paperwork issue—it's a financial and legal risk that can impact your entire operation.
Consequences of Misclassification:
- Financial Penalties – Fines of $5,000 to $25,000 per misclassified worker, plus unpaid payroll taxes
- Back Wages Owed – Full payment of wages, overtime, and benefits retroactively
- Legal Exposure – Potential lawsuits from workers seeking employee benefits and protections
- Reputational Damage – Loss of trust with employees, contractors, and clients
- Audit Triggers – Misclassification findings often lead to broader DOL investigations
Contractors Trust PWC of Labor Compliance Guidance
“Working with Public Works Consultant has been an absolute privilege and given us peace of mind when it comes to all things prevailing wage.”
“I really appreciate your promptness and professionalism. What you do is a big weight off my shoulders!”
“I simply can't put into words the amount of stress and worry you have removed from us.”
Why Public Works Consultant?
Expert Labor Compliance Knowledge
Over 10 years of specialized experience helping contractors navigate complex labor laws—from prevailing wage to worker classification and certified payroll.
Proactive Risk Management
We help you identify compliance gaps before they become violations, protecting your business from penalties, audits, and legal exposure.
Full-Service Support
Beyond worker classification, we handle certified payroll, wage determinations, contract reviews, and compliance monitoring—so you can focus on building.
Don't Navigate the New Rule Alone.
The DOL's new independent contractor rule is complex, and the stakes are high. Download this free guide now to understand the six-factor test, review real-world examples, and learn how to classify workers correctly under the new standard.
If you're still uncertain after reading the guide, Public Works Consultant is here to help. We offer free consultations to review your worker classifications and ensure full compliance with federal and state labor laws.