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The Age-Old Argument Of Who Qualifies As An Independent Contractor - Employment and HR

The Age-Old Argument Of Who Qualifies As An Independent Contractor - Employment and HR
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DOL Withdraws January 2021 Trump Administration Independent Contractor Test | McGuireWoods LLP

To embed, copy and paste the code into your website or blog: On May 5, 2021, the U.S. Department of Labor (DOL) eliminated a Trump administration end-of-term rule for determining whether workers should be classified as independent contractors or employees under the Fair Labor Standards Act. The former administration rolled out the rule on Jan. 7, 2021, and though it went through the full rulemaking process, it never took effect. Withdrawn Rule and Revised Economic Realities Test The withdrawn rule would have simplified the “economic realities test” for determining whether a worker is properly classified as an independent contractor. The simplified economic realities test would have focused on two core factors, while considering three other factors to guide the inquiry into a worker’s status as an employee or independent contractor. The two core factors would have been:

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