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
News Alert
August 1, 2022

EEOC: COVID-19 Screening Now Must Meet Business Necessity Test

Although COVID-19 still poses a threat to businesses and the public, the U....

Learn More
News Alert
June 23, 2022

EEOC Updates Guidance on Employer Use of Assessment Software, Algorithms and AI

On May 12, 2022, the Equal Employment Opportunity Commission (EEOC) issued ...

Learn More
News Alert
May 25, 2022

Losing the Forest for the Trees: Third Circuit Reverses NLRB in ‘Joke’ v. ‘Threat’ ULP Case

It was all a joke. That’s what the Third Circuit Court of Appeals conclud...

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
Super Lawyers
Best Law Firms US News
Best Lawyers