Following up on its release of a proposed rule issued in
September 2020, the DOL finalized new regulations on
classifying independent contractors that it suggests will provide
clarity for employers. On January 6, 2021, the DOL announced the Final Rule, which will take effect on March 8,
2021 (60 days after publication).
At the outset, the Final Rule addresses comments that it had
received in response to the publication of the proposed rule,
specifically noting that many Uber drivers were supportive overall,
and some commentators stated that there was no need for a Rule at
all. The DOL pointed to the inconsistencies and confusion in past
applications of the economic realities test as a reason why the
Final Rule was necessary.
