Lombardino in Forbes: A New Law Could Affect Your Retirement Side Hustle Income

April 09, 2024

Haynes and Boone, LLP Partner Michael Lombardino was quoted in a Forbes article after a new Department of Labor (DOL) rule set to go into effect on March 11 may limit the work available to contractors, significantly shrinking their income as they head into retirement.

The DOL recognizes independent contractors in business for themselves play an important role in the economy, a department spokesperson says. "The Department does not believe that this rule will result in widespread reclassification or a reduction in self-employment," says the spokesperson.

Yet, with "in business for themselves" not clearly defined in the rule and the factors not completely cut and dry, an unintended consequence could limit work opportunities for legitimate independent contractors, including older Americans, says Lombardino.

"It's definitely murky," he says about the rule. A Haynes Boone bulletin on the new rule that Lombardino co-authored noted that "many features of the final rule will make it more difficult to classify certain workers as independent contractors."

To read the full article in Forbes, click here.

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