Back to News

DOL’s Independent Contractor Rule on Life Support

Published on

February 22, 2021

The U.S. Department of Labor looks like it may scrap a final rule that would have given clarity to the long-standing uncertainty of which workers qualify as independent contractors.

The DOL had just passed the final rule in January, during President Trump’s waning days in office, establishing a decidedly employer-friendly, five-factor test when designating a worker as an independent contractor and not subject to the regulations of the Fair Labor Standards Act. It was to become effective March 8.

But the Biden administration, which quickly reversed several employer-friendly executive orders signed by former President Donald J. Trump and paused the DOL proposed and final rules set to take effect, delayed the effective date for the independent contractor test almost as soon as he entered office.

The DOL has since pivoted and delayed the effective date for the independent contractor status rule to at least early May so that the new administration could examine it further. On Friday, the department said it was withdrawing a previous opinion letter that supports the five-factor test for who is an independent contractor, signaling a likely rejection of the final rule.

However, the rule may not be thrown out completely. The department could alter it in accordance with the new administration’s vision – though that seems unlikely now.

If you have any questions about who is and who isn’t an independent contractor at your business, please contact me or any member of the Barley Snyder Employment Practice Group.


Related News

View More News
Press Release
May 16, 2025

Barley Snyder Partner Jill Sebest Welch Honored with 2025 Distinguished Alumni Award Recipient by Manheim Township Alumni Association

For Immediate Release Lancaster, Pa. – Barley Snyder is proud to announce that partner Jill Sebest Welch has been named a 2...

Learn More
Press Release
May 15, 2025

Barley Snyder Adds Employee Benefits Attorney Nikolajs Gaikis to Lancaster Office

For Immediate Release Lancaster, Pa. – Barley Snyder is pleased to announce that attorney Nikolajs V. Gaikis has joined the...

Learn More
Press Release
April 25, 2025

Barley Snyder Managing Partner Jennifer Craighead Carey Named to CPBJ Power Law List for Second Consecutive Year

For Immediate Release Lancaster, Pa. – Barley Snyder is pleased to announce managing partner Jennifer Craighead CareyÂ...

Learn More

Other Upcoming Events

View All Upcoming Events
Jun
03
7:30 am
-
12:00 pm
event
Location

Wake Up With Barley – A Morning on Real Estate 2025

Learn More

Get in Touch

Our attorneys, paralegals and staff look forward to hearing from you. Please reach out to let us know how we can help.

Get In Touch
RECOGNIZED IN
Super Lawyers
Best Law Firms US News
Best Lawyers