Share on LinkedInShare on LinkedIn

ARTICLE · 17 OCTOBER 2022

DOL Unveils Updated Independent Contractor Rule

On Tuesday, October 11, the Department of Labor (DOL) issued new guidelines for categorizing independent contractors and employees per the Fair Labor Standards Act.

United StatesEmployment and HR

On Tuesday, October 11, the Department of Labor (DOL) issued new guidelines for categorizing independent contractors and employees per the Fair Labor Standards Act. The proposed rule is an overhaul of the existing guidelines and is similar to the rule adopted during the Obama administration. In a nutshell, it will make it more difficult for companies to classify workers as contractors instead of employees.

What the Rule Stipulates

The new blueprint urges an analysis of the "totality-of-the-circumstances" for a specific worker instead of looking at particular criteria. As a result, policies for categorizing an independent contractor are much tighter.

Before deeming workers to be independent contractors, employers would be required to apply an "economic realities" test. Using this test, employers would determine several factors, including the following:

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

See more popular content from