NBOA’s contacts at the law firm Venable and the accounting firm Armanino have shared broad analyses of these developments, which NBOA will be following closely in the months ahead. In this labor and employment alert, Venable explored the U.S. Department of Labor’s withdrawal on June 7 of two Wage and Hour Division administrative interpretations on independent contractors and joint employment. “While the withdrawal of the guidance has little bearing on existing law, it is a strong indication that the administration will attempt to reverse Obama-era policy in favor of less aggressive regulation,” the firm wrote.
Similarly, Armanino reported in a tax alert that a unanimous ruling by the U.S. Tax Court could make it easier for employers whose workers have been reclassified as “employees” by the IRS to avoid income tax liability for the workers’ earnings.
While the full impact of these developments remains unclear, the implications could be significant for NBOA members and other independent schools involving their classification of workers as employees or contractors. “Independent schools are by no means free and clear to reclassify any workers,” said Grace Lee, NBOA’s vice president of legal affairs. “Schools remain responsible for complying with existing regulations and case law pertaining to proper classification of workers. If you have questions, be sure to contact your tax and legal professionals.”
NBOA will continue to report on these developments as they unfold.
