On October 13, 2022, the U.S. Department of Labor published a Notice of Proposed Rulemaking (NPRM) to revise the Department’s guidance on how to determine who is an employee or independent contractor under the Fair Labor Standards Act (FLSA). The NPRM proposed to rescind a prior rule, Independent Contractor Status Under the Fair Labor Standards Act (2021 IC Rule), that was published on January 7, 2021 and replace it with an analysis for determining employee or independent contractor status that is more consistent with the FLSA as interpreted by longstanding judicial precedent. The Department believes that its proposed rule would reduce the risk that employees are misclassified as independent contractors, while providing added certainty for businesses that engage (or wish to engage) with individuals who are in business for themselves.
The comment period closed on December 13, 2022. The Department is currently reviewing all timely submitted comments. The full text of the NPRM can be found at Federalregister.gov.
- Proposed Rule: Employee or Independent Contractor Classification under the Fair Labor Standards Act
- Extension of Comment Period: Employee or Independent Contractor Classification Under the Fair Labor Standards Act
- News Release: U.S. Department Of Labor Announces Proposed Rule on Classifying Employees, Independent Contractors; Seeks to Return to Longstanding Interpretation
- Regulatory History: Employee or Independent Contractor Classification Under the Fair Labor Standards Act