Independent Contractor Final Rule Will Take Effect March 11

The Labor Department announced its final rule revising interpretation of whether a construction or other worker is an independent contractor.

HR Dive

January 9, 2024

1 Min Read
Getty Images

The U.S. Department of Labor announced Tuesday a final rule revising its interpretation of the Fair Labor Standards Act’s classification provision to determine whether a worker may be considered an independent contractor.

The final rule largely tracks the agency’s October 2022 proposed rule. It retains the multifactor, “totality-of-the-circumstances” framework for analyzing independent contractors’ status included in that proposal.

Under this framework, DOL will consider six nonexhaustive factors when examining the relationship between a worker and a potential employer:

  • Worker’s opportunity for profit or loss.

  • Investments made by the worker and the employer.

  • Degree of permanence of the work relationship.

  • Nature and degree of control over performance of the work.

  • Extent to which the work performed is an integral part of the employer’s business.

  • Use of the worker’s skill and initiative.

The rule will be published in the Federal Register on Wednesday, Jan. 10, and is slated to take effect March 11, officials said.

To read the rest of this story from our sister publication, HR Dive,
click here

About the Author(s)

HR Dive

HR Dive provides in-depth journalism and insight into news and trends shaping human resources. The newsletters and website cover topics such as talent acquisition, learning and development, diversity and inclusion, compensation, benefits, onboarding and more.

HR Dive is operated by Industry Dive.

Subscribe to get the latest information on products, technologies and management.
Join our growing community and stay informed with our free newsletters.

You May Also Like