The Independent Contractor Triple Threat: Why Your Classification Must Pass Three Different Tests
Your contractor classifications now face three distinct legal gauntlets: the DOL’s flexible seven-factor test, courts’ rigid six-factor standard, and state ABC laws’ all-or-nothing framework. You could pass federal scrutiny yet fail in court or stumble on a single state prong. Misclassifications trigger simultaneous exposure across all fronts—back wages, penalties, and lawsuits. Your 1099 filings create […]
How 2026 State Minimum Wage Increases Could Reclassify Your Workforce
Eighteen states are raising minimum wages on January 1, 2026, which will automatically increase salary exemption thresholds and potentially reclassify your exempt employees. Washington’s $17.13/hour minimum wage triggers an $80,168 exempt threshold, while California’s jumps to $70,304. If your currently exempt employees earn below these new state-calculated thresholds, you’ll need to either raise their salaries […]
“No Tax on Tips and Overtime” – Compliance Guide for Financial Services Employers
H.R. 1 doesn’t eliminate tax on tips and overtime—it creates federal income tax deductions that employees claim when filing returns, while payroll withholding continues unchanged. You’ll need upgraded payroll systems by December 31, 2025, to track qualified tips (capped at $25,000) and overtime premiums separately for W-2 reporting starting in 2026. Only 68 approved occupations […]
