DOL Takes a Step Towards Revising Independent Contractor Regulation

DOL Takes a Step Towards Revising Independent Contractor Regulation

The U.S. Labor Department (DOL) submitted a proposal on March 5 to likely modify or repeal the business-friendly independent contractor (IC) regulation DOL issued two weeks before former President Donald Trump left office. Following clearance from the White House Office of Information and Regulatory Affairs (OIRA), the DOL will release the new proposal for public comment.

The IC rule finalized under the Trump Administration was originally set to take effect on March 8 and would have adopted a new test to clarify whether workers are employees or independent contractors as it relates to minimum wage and overtime requirements.

Details regarding the substance of the Biden Administration’s proposal have not been made public as of yet. The Biden administration also recently finalized a delayed effective date of the Trump Administration rule on March 4, pushing the effective date 60 days to May 7, 2021.

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