Compliance Stuff

On March 14, 2026, the West Virginia Legislature passed a  bill  (House Bill (HB) 4009) to allow employers to contribute to a worker’s portable benefit account while still classifying that worker as an independent contractor. The bill is likely to be especially impactful for rideshare and food delivery companies that rely heavily on gig workers for app-based services. 0:00 4:27 Quick Hits West Virginia legislators passed a bill (HB 4009) that permits companies to provide portable benefit accounts for workers without needing to classify those workers as employees. Governor Patrick Morrisey has not signed or vetoed the bill yet. If enacted, the bill would take e ffect for taxable years starting on January 1, 2026, or later. Portable benefits are benefits that stay with the individual and accumulate based on hours worked or a percentage of transaction fees. They can function similar to a 401(k), paid time off program, or health savings account (HSA). Instead of benefits offered...

At a Glance This Littler Lightbulb highlights some of the more significant employment and labor law developments in the federal courts of appeal in the last month. Following a jury verdict finding the plaintiff in  Merritt v. Tex. Farm Bureau , __F.4th __ (5th Cir. Feb. 6, 2026) was not entitled to overtime pay because the employer did not have actual or constructive knowledge of the overtime worked , the plaintiff filed motions seeking to overturn the verdict, which the district court denied.  On appeal to the Fifth Circuit, the plaintiff, who was classified as an independent contractor, was paid on commission and did not have an obligation to report hours worked, argued that because the company allowed him to work unlimited hours, it had an obligation to pay him overtime and knowledge of his overtime work was irrelevant. The Fifth Circuit rejected this argument, stating that allowing an employee to work as much as they please does not mean that an employer’s knowledge of ov...

WASHINGTON  – The U.S. Department of Labor’s  Wage and Hour Division  today announced a  proposed rule   designed to help workers and employers better understand how to determine when a worker is an employee and when the worker may be classified as an independent contractor under the Fair Labor Standards Act and related federal laws.  The proposed rule would rescind the department’s 2024 final rule addressing the classification of independent contractors and replace it with an analysis for employee classification similar to the one adopted by the department in 2021 . Consistent with Supreme Court and federal circuit court precedent, the proposed rule would make it easier to properly differentiate between employees with the protections under the Fair Labor Standards Act and those workers who work as independent contractors.  “The tens of millions of Americans who work as independent contractors are helping drive the Golden Age of the American ...

DOL Independent Contractor Proposal is Welcome News for Businesses: 4 Steps to Prepare The US Department of Labor just released a highly anticipated proposal today that should soon modernize its approach to determining whether a worker is an independent contractor or employee under federal wage laws. The Trump administration’s February 26 proposal will make it easier for businesses to engage with independent contractors – including freelancers and gig workers – while providing clearer lines on what aspects of the working relationship can trigger employee status . If you’re having a bit of déjà vu, we are too. This marks the third regulation on independent contractor status since 2021, and you might be dizzy from the back-and-forth changes. Here’s everything you need to know about the DOL’s latest proposal and four steps you can take now to prepare. Why Does it Matter? The distinction between independent contractors and employees is significant. For example, workers who are considered ...