January 17, 2024 •
News
USDOL Issues Independent Contractor Final Rule Effective March 11, 2024
On January 10, 2024, the United States Department of Labor (USDOL) issued a final rule on Employee or Independent Contractor Classification Under the Fair Labor Standards Act. The final rule:
- Restores multifactor analysis to determine whether a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA)
- Ensures that all factors are analyzed without assigning a predetermined weight to any particular factor or set of factors
- Returns to longstanding interpretation of the economic reality factors, including:
- opportunity for profit or loss depending on managerial skill
- investments by the worker and the potential employer
- degree of the permanence of the work relationship
- nature and degree of control
- extent to which the work performed is an integral part of the potential employer’s business
- Rescinds the 2021 Independent Contractor Rule
For more information, see the USDOL: