The pace of change then increased with a decision by the National Labor Relations Board on Aug. 27 adopting an expanded definition of “joint employer.” This move takes aim at nontraditional work arrangements in franchising, outsourcing, temporary agencies, independent contracting and “sharing” economy companies such as Uber.

Uber is now defending a class-action suit against drivers who are challenging their classification, by the company, as independent contractors. This new, expanding definition of “employee” could significantly change how employees are hired, paid, insured and protected under labor laws.

The Department of Labor is now proposing new qualifications that would raise the minimum salary requirements for overtime pay and non-exempt status to more than twice the current level. This rule change would extend overtime and minimum wage pay to almost 5 million additional workers in 2016.

What does this summer of change mean for employers? Plenty.

Understanding the changing regulations associated with employment is the first step. It’s becoming so complex that enlisting the help of a human resources expert is necessary. An HR professional or employment attorney can advise a business in these specific matters. Once a business has a clear understanding of the regulations, developing a compliance plan is needed to make sure a good faith effort is being made to meet the provisions of new and existing laws or regulations.

With so many recent and pending changes, 2016 is a good time to update your employment documents including job applications, job descriptions and performance management tools. All job categories should be closely scrutinized to determine whether specific jobs qualify for overtime. Given the expanded definition of employees, the National Labor Relations Board has changed the landscape for many employers.

Another area to analyze is your “independent” contractor relationships, including temporary employment and employee leasing agencies. The contract between the parties should address the employment relationship. Many of these relationships can now be construed more like an employment relationship, subject to all the same laws and regulations.

A business’s employee handbook should also be reviewed and updated. The changing employment environment, along with new trends, makes it essential to bring these documents up to date with current regulations and trends. It’s also an appropriate time to perform a quick review of all employment policies and procedures.

After these reviews and updates, a training and implementation plan should be considered. New regulations and employment trends need to be communicated and audited. Increased emphasis on employee relations and creating the right culture may be appropriate. A changing environment may demand adjustments in overall culture. A small investment of time could certainly reduce the likelihood of future employment issues.

Lastly, the purchase of an Employment Practices Liability Insurance policy will help businesses protect themselves financially against allegations and suits associated with employment. Discrimination, harassment, failure to hire, wrongful termination and other employment matters are typically covered under this type of policy. Both legal expenses and a judgement/settlement are part of the insurance protection afforded.

Some limited coverage is normally included for regulatory fines and penalties. The insurance policy normally requires that a business use certain law firms for defense. Employment-related allegations can be both expensive and damaging to a business. EPLI insurance can provide financial, legal and public relations help if needed.

Understanding the changing employment landscape, developing a plan of compliance and implementing a risk management strategy are critical in successfully navigating the evolving employment environment.

This article appeared in the December 12th edition of the Springfield News-Leader and can be accessed online here.

Richard is CEO of Ollis/Akers/Arney, an employee owned independent insurance and business advisory firm.