DOL Proposes New Rule On Independent Contractor Classification

The U.S. Department of Labor (DOL) unveiled a proposed rule on September 22, 2020 to clarify whether a worker is or isn't an independent contractor for purposes of the Fair Labor Standards Act (FLSA).  The proposed rule adds a new Part 795 to Title 29 of the Code of Federal Regulations, entitled "Employee or Independent Contractor Classification Under The Fair Labor Standards Act."

Here is a summary of proposed new Part 795:

• It contains the DOL's general interpretations of the text governing individuals' classification as employees or independent contractors under the FLSA. The DOL's Wage and Hour Division "intends the interpretations to be used by employers, employees, and courts to understand employers' obligations and employees' rights under the [FLSA]."  To the extent that prior administrative rulings, interpretations, practices, or enforcement policies relating to classification as an employee or independent contractor under the FLSA are inconsistent or in