The U.S. Department of Labor (DOL) released a final rule Jan. 9 that changes the criteria for classifying independent contractors. The final rule largely mirrors the DOL’s proposed rule and requires companies to weigh a variety of economic factors to determine whether a worker is an employee or an independent contractor. The final rule will take effect on March 11.
DOL Issues Independent Contractor Final Rule
SHRM | Jan 2024
Effective date: 3/11/24
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Businesses will soon find it harder to classify workers as independent contractors thanks to key changes made by the U.S. Department of Labor (DOL) today. The Biden administration officially rescinded a rule that made it easier to classify workers as independent contractors under federal wage and hour rules. In its place, businesses will be forced to follow an outdated standard that will likely result in more workers being classified as employees.
Businesses Will Struggle to Classify Workers as Independent Contractors Thanks to New DOL Rule
Fisher Phillips | Jan 2024
Under the 2024 rule, the DOL returns to the six-factor test, with no one factor presumed to carry more weight than another. In addition to doing away with the prioritizing of certain factors over others, the new rule also reframes the “integral part of the business” factor to equate “integral” with work “critical, necessary, or central” to the company’s principal business
DOL Announces Final Rule on Determining Independent Contractor Status
Ogletree | Jan 2024
Its most important change is to factor four, the “nature and degree of control.” The proposed rule stated that when a potential employer exercises control to comply with other laws or regulations, that control still indicates that the worker is an employee. But the final rule changes course. It states that control necessary to comply with “specific” legal requirements does not necessarily indicate that the worker is an employee. Stated differently, businesses can take steps to comply with state, federal, tribal, or local laws without affecting the worker’s classification.
U.S. Department of Labor Finalizes Independent Contractor Regulation
Littler | Jan 2024
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