Community Empowerment Matters

  [Image Description: The United States Department of Labor’s Francis Perkins Building]   Background: Proper classification of one’s workforce is essential for any small business. The consequences of misclassification can be substantial, and an employer may be held liable for damages and penalties. [1] Although the line can sometimes blur, the differences between an independent contractor and an employee are vast. Generally, because independent contractors are owed fewer duties than employees (chiefly, the right to be paid a minimum wage and receive benefits), it is considered easier and less expensive for a small business to hire workers as independent contractors. [2] Perhaps most importantly, protections under the Fair Labor Standards Act (FLSA) do not extend to independent contractors.   Prior to the Trump administration, the courts developed a six-factor “economic-realities” test to determine proper worker classification, weighing:           1.                 Opportunity f

       An increasing number of individuals and businesses are using AI for many purposes, from planning meals to conducting research. At least 75% of small businesses use AI in their work in some capacity. Several uses of AI technologies may benefit small businesses and community organizations. For example, programs can take notes and summarize virtual meetings, facilitate email marketing automation, or even draft custom business plans . However, as these technologies are so new, it’s unclear what legal and privacy issues might arise. Thus, it is important for businesses and organizations to understand some of the legal concerns associated with using these technologies in order to best protect their business interests. Benefits Before discussing the legal implications, we need to understand the benefits of these technologies and why small businesses may wish to use them. There are three main categories of AI technology: 1)      Process Automation – AI technologies can help small