The Biden administration has issued new rules aimed to prevent misclassification of employees as independent contractors.
The new rule considers six criteria in evaluating employee status. In addition to control over workers and “entrepreneurial opportunity,” the new rule also evaluates whether special skills are required, the permanence of the relationship, and the investment made by the worker. In the construction industry, it is estimated that misclassification costs workers between $10,000 and $16,000 per year.