Status of the Independent Contractor Rule
On March 11, 2021, the U.S. Department of Labor (DOL) announced a
proposal to rescind the independent contractor final rule. The final rule was
published on Jan. 7, 2021 and is scheduled to become effective on May 7,
2021. The DOL’s position is that adopting the rule would significantly weaken
worker protections under the Fair Labor Standards Act (FLSA).
Commentators on this rule have suggested that giving greater weight to the core factors would likely result in more workers being classified as independent contractors rather than employees.
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