U.S. Department of Labor DOL released Final Rule addressing independent contractor status under Fair Labor Standards Act FLSA: ultimate inquiry individuals economical dependence on another for work, economic reality; control over work; individual opportunity for profit & loss
Tuesday, March 2, 2021
Last year, the Internal Revenue Service (IRS) and the Department of Labor (DOL) issued two notices that extended certain benefit plan deadlines for both employees/plan participants and for plan administrators as a result of the COVID-19 national emergency (the “Original Notices”). A link to our article about these deadlines can be found here.
The Original Notices stated that, when determining the deadline for certain benefit-related actions, such as a HIPAA special enrollment or a COBRA election, the period from March 1, 2020 until 60 days after the end of the national emergency (the end of such 60-day period is referred to as the end of the “Outbreak Period”) should be disregarded. As an example, an employee whose COBRA election deadline was March 15, 2020 (15 days after the extension went into effect) would have until 15 days after the end of the Outbreak Period to make their COBRA election.
Saturday, February 27, 2021
We recently provided an update on the looming end date for COBRA and other deadline extensions and the uncertainty that continues to add to the administrative burdens without more clarity from the DOL and IRS. Message received, apparently.
On behalf of the IRS, the DOL has now released Disaster Relief Notice 2021-01 that attempts to resolve a potential conflict with other statutory guidance under ERISA Section 518 and Code Section 7508A, which technically limits the allowable deadline extension period to a maximum of 1 year. Unfortunately, this now results in new deadlines that can apply immediately and will differ based on individual events. Fortunately, the DOL recognizes this will be complicated and burdensome to many so they also offer welcomed commentary that will provide relief to employers and plan administrators who take reasonable steps to comply.
US Department of Labor’s DOL Wage and Hour Division withdrew two Trump-era opinion letters: whether a service provider for a virtual marketplace company is an independent contractor or an employee subject to the Fair Labor Standards Act FLSA & compensability of time truck drivers spend in a truck’s sleeper berth while they are otherwise relieved from duty.