DOL Proposes Rule to Rescind 2024 Independent Contractor Standard

The U.S. Department of Labor’s Wage and Hour Division has unveiled a proposed rule aimed at providing regulatory guidance if a worker should be classified as an employee or independent contractor under the Fair Labor Standards Act and other federal laws.

The proposal would rescind the department’s 2024 independent contractor rule and reinstate an analytical framework more closely aligned with the 2021 standards and “long-standing legal principles used in federal courts across the country,” emphasizing an “economic reality” test. The proposed rule aims to help employers and workers navigate classification decisions more predictably, potentially reducing disputes and litigation over misclassification.

Source(s):

Zheliabovskii, R. (2024). DOL Proposes Rule to Rescind 2024 Independent Contractor Standard. Shrm.org. https://www.shrm.org/topics-tools/employment-law-compliance/dol-proposes-rule-to-rescind-2024-independent-contractor-standar

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