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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 
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).

 
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   
Legal Deadline:  None
Timetable:
Action Date FR Cite
NPRM  10/13/2022  87 FR 62218   
NPRM Comment Period Extended  10/26/2022  87 FR 64749   
NPRM Comment Period Extended End  12/13/2022 
Final Rule  01/10/2024  89 FR 1638   
Final Rule Effective  03/11/2024 
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 
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