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| DOL/WHD | RIN: 1235-AA43 | Publication ID: Spring 2024 |
| Title: Employee or Independent Contractor Classification Under the Fair Labor Standards Act | |
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Abstract:
The Department proposed to rescind the Independent Contractor Status under the Fair Labor Standards Act rule published on January 7, 2021, 86 FR 1168 (2021 IC Rule) and provide guidance for determining employee or independent contractor status under the FLSA that is more consistent with existing judicial precedent and the Department’s longstanding guidance prior to the 2021 IC Rule. The Department conducted extensive stakeholder engagement prior to publishing the NPRM on October 13, 2022. The Department’s Wage and Hour Division (WHD) held a number of stakeholder forums in the summer of 2022, which solicited participation from many workers, unions, businesses, free-lancers, independent contractors, and affiliated advocacy groups. Those stakeholder forums informed the Department’s drafting of the 2022 proposed rule. The Department subsequently benefited from thousands of comments submitted during the comment period. In the final rule, the Department returns to a totality of the circumstances analysis of the economic reality test in which factors do not have a predetermined weight and are considered in view of the economic reality of the whole activity. The final rule rescinds the 2021 IC Rule. The Department published the final rule on January 10, 2024 (89 FR 1638). |
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| Agency: Department of Labor(DOL) | Priority: Section 3(f)(1) Significant |
| RIN Status: Previously published in the Unified Agenda | Agenda Stage of Rulemaking: Completed Actions |
| Major: Yes | Unfunded Mandates: Private Sector |
| CFR Citation: 29 CFR 795 29 CFR 780 29 CFR 788 | |
| Legal Authority: 52 Stat. 1060, as amended 29 U.S.C. 201-219 | |
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Legal Deadline:
None |
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Timetable:
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| Regulatory Flexibility Analysis Required: YES | Government Levels Affected: Federal, Local, State, Tribal |
| Small Entities Affected: Businesses, Governmental Jurisdictions, Organizations | Federalism: No |
| Included in the Regulatory Plan: Yes | |
| RIN Data Printed in the FR: Yes | |
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Agency Contact: Daniel Navarrete Director, Division of Regulations, Legislation, and Interpretation (DRLI) Department of Labor Wage and Hour Division 200 Constitution Avenue NW, Room S-3502, Washington, DC 20210 Phone:202 693-0406 Email: navarrete.daniel@dol.gov |
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