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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