Rewind, revise, clarify: DOL takes aim at independent contractor regs

The U.S. Department of Labor (DOL) has announced a revised proposed regulation that provides guidance on whether workers are properly classified as independent contractors—who aren’t covered by the Fair Labor Standards Act (FLSA)—or as employees—who are entitled to the Act’s minimum wage and overtime provisions, as well as other employment-related benefits. The proposed regulation is the next step in the DOL formally rescinding the previous administration’s regulation and was originally set to go into effect in March 2021.

Whereas the current regulation is generally regarded as employer-friendly because it makes it more difficult for individuals to qualify as employees, the proposed revision would narrow the scope of the current analysis and make it more difficult for employers to classify workers as independent contractors.

Proper classification of workers remains enforcement priority