Earlier today, the Department of Labor released a version of a proposed regulation that changes the process for determining when a worker can be classified as an independent contractor or an employee under the Fair Labor Standards Act. The proposed rule will be published in the Federal Register on Thursday, October 13 and will have a 45-day comment period that ends on November 28.
The proposed rule rescinds the Trump Administration regulation that prioritizes certain factors under the economic realities test. The proposed rule appears to resurrect the Obama Administration’s interpretation, whereby equal weight is given to all factors of the economic realities test. NCA will review the proposed rule in more detail and provide comments to the Department of Labor.
For more information or to provide your thoughts on the effect of the proposed rule, please contact Joe Trauger at [email protected].