October 18, 2022 • News

USDOL Publishes Proposed Rule on Independent Contractor Classification

The U.S. Department of Labor (USDOL) recently published a Notice of Proposed Rulemaking (NPRM) on Employee or Independent Contractor Classification Under the Fair Labor Standards Act which would:

• Restore multifactor analysis to determine whether a worker is an employee or an independent contractor under the FLSA
• Ensure that all factors are analyzed without assigning a predetermined weight to any particular factor or set of factors
• Return to longstanding interpretation of the economic reality factors, including: the investment factor; control factor; opportunity for profit or loss factor; and the integral factor which considers whether the work is integral to the employer’s business.
• Rescind the 2021 Independent Contractor Rule

Public comments may be submitted through November 28, 2022. For more details, see the USDOL news release or the Proposed Rule.