Independent Contractor Rule by Department of Labor Still in Transition

Employers Can Participate in Independent Contractor Discussion June 24th

The Economic Reality Test for independent contractors is still in effect. The Department of Labor’s (DOL) Wage and Hour Division announced on June 3, 2022, that it is reviewing regulations addressing the distinction between an employee and an independent contractor under the Fair Labor Standards Act (FLSA). Independent contractors are not eligible for the federal minimum wage and overtime pay that covered employees receive under the FLSA. On January 7, 2021, the DOL published a final rule, which adopted an economic reality test which considers whether a worker operates their own business or is economically dependent on an employer for work. This rule is still in effect, but the DOL plans to engage in new rulemaking on this issue and seeks public feedback. You as an employer can give your thoughts on June 24, 2:30-4:30 EST.