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NEWS | DOL Independent Contractor Rule Update

DOL Independent Contractor Rule Update

The comment period is coming to a close for a proposed rule from the U.S. Department of Labor (DOL) that would adjust how employers determine whether a worker is an employee or a contractor. The proposal would largely roll-back a similar rule-making that occurred during Trump Administration.

As background, the proposal requires a multi-factor economic realities test that considers factors of the working relationship to determine whether the worker is truly in business for themselves. The proposed changes would be a return to a “totality-of-the-circumstances” analysis, according to the proposal, evaluating all of the factors involved in the working relationship equally.

The rulemaking also would rescind a Trump-era rule that outlined a similar multi-factor test, but that gave greater weight to how much control workers have over their job duties and their opportunities for profit or loss when determining whether a worker is an employee or an independent contractor. Click here for more details.

The proposed regulation was officially published in the Federal Register on Oct. 13, and comments are due Dec. 13.

NSBA is drafting comments which will be shared with members to help facilitate broader comment submissions. Stay tuned.

Please click here to read the proposal.


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