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ARTICLE · 12 JULY 2021

DOL Withdraws Trump Administration Independent Contractor Rule

Peckar & Abramson, P.C.
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On May 6, 2021, the Department of Labor (DOL) withdrew its Independent Contractor rule. The withdrawal follows a March 2021 notice of proposed rulemaking issued by the DOL citing several reasons why the...

United StatesGovernment, Public Sector
Lori Lange
Lori Lange

On May 6, 2021, the Department of Labor (DOL) withdrew its Independent Contractor rule. The withdrawal follows a March 2021 notice of proposed rulemaking issued by the DOL citing several reasons why the rule should be withdrawn. The rule, published on January 7, 2021, would have provided a new interpretation of who is an employee and who is an independent contractor under the FLSA. The FLSA requires employers to pay minimum wages and overtime to covered employees, but independent contractors do not have these protections.

Independent Contractor Analysis

For many years, various courts have applied a multifactor economic realities analysis when determining whether a worker is an employee or independent contractor. Among the factors considered: (1) the nature and the degree of control exercised by the alleged employer; (2) the amount of the alleged contractor's investment in facilities and equipment (3) the degree to which the alleged employee's opportunity for

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