If your multi-farrier practice crosses state lines, a new United States Department of Labor (DOL) final rule might add a significant wrinkle to how you conduct business

While most farriers don’t operate multi-farrier practices, 91% of those who do so classify their workers as independent contractors, according to the American Farriers Journal Farrier Business Practices Benchmark Survey. The rule changes how the DOL determines whether a worker is an employee or an independent contractor.

The DOL assumes all workers are employees. The burden of proving independent contractor status rests with the business owner. The rule went into effect in mid-March.

It must be noted that multi-farrier practice employees are only subject to the new rule when they fall under the Fair Labor Standards Act. Employees qualify under “enterprise coverage” and “individual coverage.” Employees under enterprise coverage work for employers that have at least two employees and have an annual business of at least $500,000. Those who regularly work between states qualify under individual coverage.

Determining Status

The rule establishes six factors to determine whether a worker qualifies as an employee or an independent contractor. No one factor or set of factors carry more significance than others.

1. Opportunity for profit or loss, depending on managerial skill. “If a worker has no opportunity for a profit or loss,” the DOL states, “then this factor suggests that the worker is an employee.”

2. Investments by the worker and the potential employer. A worker’s costs for “tools and equipment to perform a specific…