Update on Proposed Independent Contractor Rule

February 24, 2021

In October I summarized a proposed U.S. Department of Labor rule that would establish new criteria for determining whether a worker is an independent contractor. (See the post below dated October 14, 2020.) After considering approximately 1800 public comments, the Department of Labor finalized the rule on January 6, 2021. The rule would simplify the analysis and make it easier to determine – at least in some cases – whether a worker is an employee or an independent contractor for purposes of the Fair Labor Standards Act. The rule was scheduled to take effect March 8, 2021.

However, it is no surprise that the Biden administration is delaying implementation of numerous rules promulgated at the end of the Trump administration, including the DOL’s independent contractor rule. The Biden administration intends to review rules and regulations issued by the Trump administration, but which have not yet become effective. It is certain that many of those rules, including the independent contractor rule, will be scrapped or substantially modified.