Independent Contractors need Recognition too!

Recognizing Independent Contractors

Earlier this year, legislation was introduced in Congress that would have effectively banned independent contractor classifications under federal labor law. Those in the incentives, rewards & recognition marketplaces would have been adversely affected.

Good News: Independent Contractor Status Rule Under the Fair Labor Standards Act is Withdrawn

On May 5, 2021, the Department of Labor announced a final rule withdrawing the “Independent Contractor Status Under the Fair Labor Standards Act” final rule (Independent Contractor Rule). The withdrawal was effective immediately upon publication in the Federal Register on May 6, 2021.

This is a welcome withdrawal for all industries that use independent contractors, and it’s an excellent time to review incentive, reward, and recognition programs for independent contractors.

Preparing for Post-COVID Employee Trends

These four employee trends are predicted:

  1. Remote work is here to stay
  2. A blended workplace of both in-office and remote may be the future
  3. Learning and development are top employee priorities
  4. Employee burnout is a threat to the health of your workforce

A targeted incentive, recognition, and reward program for independent contractors is one way to prepare for each of these predicted trends:

  • Independent contractors may have already been working remotely and keeping engagement levels up takes a concerted effort.
  • A properly structured reward & recognition program can include opportunities for learning new skills, accessing new information, and testing or other assessment tools.
  • Likewise, an effectively designed incentive and recognition program can incorporate safety and wellness goals as well as offering travel or stress-relieving options that can help contractors recharge before they burn out.

Recognition = Retention

While many companies are focused on retaining key employees, independent contractors maybe even more inclined to look for new opportunities. Appreciating, recognizing, and rewarding achievement is a key factor in employee retention; the concept is the same for independent contractors.

Contact us to learn more about how you can retain your top independent contractors through an effectively designed recognition program!


Read the Incentive Federation Inc.’s bulletin: Final Rule: Independent Contractor Status Rule Under the Fair Labor Standards Act is Withdrawn





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