A rule that applies “economic realities” to determining whether a subcontractor is an independent contractor or employee may be back on the table for roofing contractors.
In early 2021, the Department of Labor under the Trump administration attempted to give employers more certainty about determining the status of employees as independent contractors or employees under the Fair Labor Standards Act. The rule allows for the use of economic realities to determine the status of a subcontractor, such as the degree and nature of control exerted over the work and the permanence in the relationship between the individual and the potential employer.
The Biden administration rescinded this rule in its entirety. However, on March 15, Judge Marcia A. Crone of the U.S. District Court in Eastern District of Texas reinstated that independent contractor rule. In this Legal Insights episode, Trent Cotney, partner at Adams and Reese, goes over what contractors need to know about this rule and how it affects their business.
“This doesn’t necessarily apply nationwide, although I do anticipate a lot of people relying on this,” he said.
Contractors will also want to hear what Cotney has to say about preparing their tax documents this tax season this year. Cotney says there are also important tax credits related to COVID-19 contractors can take advantage of, while those who took out additional PPP loans need to file them properly.
With the 2022 Roofing Day just around the corner, Cotney gives a preview of how Adams and Reese will be working to support the roofing industry while in Washington, D.C.
Watch the video here, or for the podcast version, visit our RC Podcast Show page.