New 2022 laws impacting small businesses, sole proprietors, and freelancers (including gig workers and independent contractors)

It’s been a crazy couple of years for small businesses, sole proprietors, freelancers, and independent contractors. Trying to navigate the intricacies of COVID restrictions, dealing with hiring problems and supply chain issues, trouble with social unrest, and many other “new” problems can seem overwhelming to small businesses, including gig workers, freelancers, contractors, and sole proprietors.

Well, there’s potentially good news ahead: several states are enacting new laws for 2022 that (in some cases) make things a little easier for you. We’ve gathered some of them below for your consideration. 

Womply has made email marketing truly automatic for busy small business owners and all types of independent contractors. Learn more, plus get free reputation monitoring and customer insights when you sign up for Womply Free!

Important: This article is for informational purposes only, and should not be considered legal advice. Womply assumes no liability for the use or misuse of this information. This is not a comprehensive list of all laws and regulations for all states. Get counsel from a licensed business attorney or advisor in your state.

New Federal laws for 2022 that can impact small businesses, sole proprietors, freelancers, gig workers, and independent contractors

There are several new Federal regulations taking effect for 2022 that can impact small businesses, contractors, freelancers, and others.

The first will be important for those whose compensation includes tips, such as drivers, entertainers, restaurant waitstaff, and many other workers, as well as businesses that employ such workers.

The new Final Rule from the Department of Labor is amending their regulations regarding how employers may take a tip credit.

Specifically, the Department of Labor “is amending its regulations to clarify that an employer may only take a tip credit when its tipped employees perform work that is part of the employee’s tipped occupation. Work that is part of the tipped occupation includes work that produces tips as well as work that directly supports tip-producing work, provided the directly supporting work is not performed for a substantial amount of time.”

Another final rule concerns tip pooling and penalties for employers who unlawfully retain employees’ tips.

There are also the more well-known requirements for employers and health-care workers relating to the COVID-19 vaccine, some of which are still up in the air and subject to court action. Read a summary of the new Federal regulations for 2022 and of course be sure to check your local sources for updates and specific state requirements.

New state-level regulations and requirements for 2022

Several states are implementing new regulations that will go into effect for 2022. It’s sometimes said that California is a test-bed for widespread regulatory trends (sometimes worded “as California goes, so goes the nation”), so let’s first look at what California is doing in this regard for 2022.

California is enacting bills relating to PTO, wage theft, criminal background checks for employees, production quotas for warehouse distribution center employees, health insurance, non-disclosure agreements, employer liability, and more. 

Read more about California’s new laws and regulations taking effect for 2022.

Certain workers and contractors in California now have until the end of 2024 to conform to the ABC test

Under the new California Assembly Bill 1561, certain groups receive an extension of their exemption from the ABC test until December 31, 2024. These include:

  • licensed manicurists
  • construction trucking work performed by a CSLB licensed subcontractor performing work pursuant to a subcontract
  • data aggregators and research subjects
  • claims adjusters
  • third-party administrators
  • manufactured housing salespeople

What is the ABC test for California workers?

Under California’s ABC test, a worker is considered an employee and not an independent contractor, unless the hiring entity satisfies all three of the following conditions:

  1. The worker is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact;
  2. The worker performs work that is outside the usual course of the hiring entity’s business; and
  3. The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.

Learn more about the ABC test.

Illinois is enacting several new laws for 2022 that may impact workers and small businesses

Like California, Illinois is historically proactive about enacting new laws and regulations, and for 2022 small businesses, contractors, freelancers, and sole proprietors will want to be aware of new Illinois legislation relating to employers asking for salary history, disability discrimination, health insurance, recognizing human trafficking, domestic violence, and non-compete agreements.

In addition, the Illinois Secure Choice Savings Program Act now applies to businesses with just 5 employees, rather than 25 or more.

New York enacts new regulations for 2022 that impact businesses and workers

New York state has also been busy working on new 2022 legislation relating to whistleblower protection, privacy/surveillance of employees, paid family leave, discrimination regarding domestic workers, and a labor peace agreement requirement for city human services contractors, including foster care, day care, home care, legal services, and health or medical services, among others.

Of particular note to general contractors, subcontractors, and construction workers is New York bill 3350-A that, Litter points out, “Makes general contractors jointly and severally liable for wages, benefits, or wage supplements owed by subcontractors to construction workers. Contractors and subcontractors must be able to provide payroll records for all employees providing labor on a project. Failure to timely provide records shall be grounds for a contractor to withhold payments owed to a subcontractor at any level.”

Lots of other states have new 2022 regulations in the books. To check to see if your state has enacted new regulations that may impact you and your business, ask your local chamber of commerce or check out Littler’s full state-by-state rundown.

Win new customers, market to your existing customers, and strengthen your online presence with Womply!

Womply has made Email Marketing truly automatic for busy small business owners, independent contractors, and sole proprietors. Womply helps you turn customers into regulars and get more repeat business with targeted emails that send automatically when customers transact with you. Build customer loyalty and revenue, and get more repeat business with just a few clicks!

Womply Reputation Management makes it easy to keep up to speed with your online reviews on multiple sites at once. Our dashboard allows you to read and respond to all your reviews on all the popular platforms, all in one place with one login. Plus, you can set up automatic replies if you so choose, to help build customer engagement and loyalty, and improve your local SEO.

And don’t forget about Womply’s exclusive Customer Directory that gives you a preloaded list of all of your customers — including spend history, name, and contact information — that automatically updates with every transaction. This allows you to get smarter about your customers and their impact on your business to target the right ones, every time.

Learn more, plus get free reputation monitoring and customer insights when you sign up for Womply Free!

Recent Articles

9 Atlanta area events that can be great for your small business in 2022

In this 5-minute read: 9 events in Atlanta, GA in 2022 that your business should know about Start your year …

Read More

25 free business listing websites every small or local business should be on (Updated for 2022!)

Be sure to claim your company’s free listings on these sites so more customers can find your business. 

Read More

9 events that every Houston, TX area small business should know about in 2022

In this 5-minute read: 9 local events that Houston small businesses should take advantage of this year Attending events, business …

Read More

Small business events in Chicago: 8 ways to grow and market your business in 2022

In this 5-minute read: 8 Chicago events to add to your 2022 business calendar Wherever your business is located, you …

Read More

10 2022 Washington DC area events that can be great for your small business

In this 5-minute read: 10 events that Washington DC area businesses need to know about this year Which DC events …

Read More

5 Orlando area events in 2022 your small business should take advantage of

In this 5-minute read: 5 2022 events in Orlando, FL that your business needs to know about Which events may …

Read More

See why Womply is the #1 marketing and CRM solution used by 500,000+ businesses.