DOL Proposes Employer-Friendly New Rule to Ease the Use of Independent Contractors

The U.S. Department of Labor (DOL) proposed a new rule on Sept. 22 that sets a uniform standard for classification of workers under the Fair Labor Standards Act (FLSA), effectively reframing the multifactor economic realities test, and provides other interpretive guidance. The DOL’s rules provide guidance and although not binding on the courts, can be instructive for judicial and administrative application of the FLSA (and other laws). The new proposed rule will undergo a 30-day review period, but the DOL is likely to expedite its implementation following the review period.

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