If you are a Louisiana entrepreneur investing the time, money and effort to start a business, there are certain natural concerns you may have concerning future employee turnover. For example, your business may require extensive new employee training and on-the-job learning to get workers up to speed. If an employee takes his or her new knowledge about your industry or processes and leaves to start a new business or join a competitor, the financial investment into training will have been lost and will have to be made again to train a replacement.
The Wage and Hour Division of the US Department of Labor proposed new regulations (Administrator's Interpretation No. 2015-1), which, if implemented, will vastly expand the number of employees who must be paid on an hourly basis under the Fair Labor Standards Act (FLSA). According to the new regulations, the Department believes that there has been a dramatic expansion of misclassification of individuals as independent contractors in an effort to avoid payment of taxes and avoid compliance with labor laws.