Dive Brief:

• XpertHR and ComplianceHR have formed a joint venture between global employment law firm Littler Mendelson and Neota Logic, with the idea of bringing new tools to employers to ensure compliance in areas growing in complexity and business risk. 
• The tools, now available with XpertHR's HR and employment law resources, are focused on helping employers reduce mistakes about how employees and contractors are classified and paid, and decreasing their exposure to regulatory fines, class action lawsuits and litigation, according to Lori Brown, ComplianceHR's president and COO.
• The alliance looks to provide additional support for companies undertaking workforce reviews in 2016, given the likely changes to the Fair Labor Standards Act (FLSA) expected to become final at some point this summer, as well as increasing enforcement efforts by the Department of Labor and state regulators to define classification of independent contractors in the rapidly growing "gig economy."

Dive Insight:

Alicia D'Angelo Smith, Product Manager, XpertHR, explained that employers are under increasing pressure to assess risk regarding how they hire, engage and pay individuals for services and are in "desperate need of guidance regarding regulatory uncertainties to better mitigate risk."

According to ComplianceHR's Brown, there is little question that the Labor Dept. has increased its focus on the validity of independent contractor classifications, even partnering with more than half the states on enforcement efforts. In addition, the annual rate of FLSA filings has more than quadrupled in the past 15 years and more than doubled since the last time the agency issued regulations in 2004. With the impending proposed rules and the anticipated heightened scrutiny once they are made final, that number is likely to grow.