Rachel Demarest Gold, a partner at Abrams Fensterman, Brooklyn’s largest law firm, has issued critical guidance to business clients in light of new labor regulations affecting joint employment, independent contractors, and frequency of pay laws.
Abrams Fensterman and Gold are proactively ensuring that their clients stay ahead of significant changes in labor law. Partner Rachel Demarest Gold recently reached out to the firm’s business clients with crucial updates on new regulations that could have far-reaching implications for employers.
Gold highlights the National Labor Relations Board’s new rule on joint employment, effective from February. The rule expands the definition of a joint employer to any business with the authority to control essential terms of employment, regardless of whether this authority is exercised. This change means businesses could be held liable for labor practices at locations they don’t directly manage.
Another significant update, effective March 11, 2024, is the U.S. Department of Labor’s new rule on classifying workers as independent contractors. The rule requires that true independent contractors must operate their bona fide businesses and perform work unrelated to the business where they are contracted. This aims to ensure that workers are not misclassified to avoid employment-related costs.
Gold advises clients on New York’s Frequency of Pay law, which has seen recent legal developments. Previously, lawsuits claimed that employees must be paid weekly if they perform manual labor, with potential damages for non-compliance. A recent decision found no private right of action, meaning only the Department of Labor can enforce the law, offering some relief to employers.
Gold explained that businesses need to review their employment agreements to ensure compliance with these new rules. She advises a thorough examination of staff control, independent contractor relationships, and pay frequency practices, especially for manual laborers.
