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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
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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.
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