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USDOL's New Independent Contractor Final Rule is DOA, Or Is It? Not So Fast! | DirectEmployers Association


On Thursday, January 7, 2021, the U.S. Department of Labor (“USDOL”) published its long-awaited
Federal Register revising its interpretation of independent contractor (“IC”) status under the Fair Labor Standards Act (“FLSA”). Significantly, the Rule is NOT scheduled to go into effect until March 8, 2021, AFTER President-elect Biden will have been sworn in as the 46th President of the United States. While the new Final Rule would give employers and workers greater flexibility to arrange their work relationships, it is unlikely to survive, absent court challenge, since President-elect Biden has already vowed to immediately retract it once he becomes President.
Retracting the new Trump Rule would leave existing Obama-era Rules in place defining who are “employees” and who are ICs. However, retracting the new Trump Rules ....

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