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ARTICLE · 10 JANUARY 2024

White House Clears Independent Contractor Final Rule

Proskauer Rose LLP
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On January 2, 2024, the Office of Information and Regulatory Affairs (OIRA) completed its review of the U.S. Department of Labor's final rule on independent contractor classification under the Fair Labor Standards Act.

United StatesEmployment and HR

On January 2, 2024, the Office of Information and Regulatory Affairs (OIRA) completed its review of the U.S. Department of Labor's final rule on independent contractor classification under the Fair Labor Standards Act. The rule now heads back to DOL for publication in the Federal Register, and it is likely to take effect 60 days after such publication.

We expect the final rule to mirror the proposed rule DOL published in October 2023, codifying in a new 29 C.F.R. Part 795 the agency's "general interpretations for determining whether workers are employees or independent contractors under the FLSA" and utilizing a multi-factor "economic realities" test similar to the one used by many federal courts (and by DOL prior to the Trump administration).

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