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DOL/WHD RIN: 1235-AA43 Publication ID: Spring 2023 
Title: Employee or Independent Contractor Classification Under the Fair Labor Standards Act 
Abstract:

On January 7, 2021, the Department of Labor (Department) published a final rule on independent contractor status under the Fair Labor Standards Act (FLSA). See 86 FR 1168 (2021 IC Rule). The Department subsequently published final rules to delay and withdraw the 2021 IC Rule on March 4, 2021, and May 6, 2021, respectively. See 86 FR 12535 (Delay Rule); 86 FR 24303 (Withdrawal Rule). On March 14, 2022, a district court in the Eastern District of Texas vacated the Department’s Delay and Withdrawal Rules, concluding that the 2021 IC Rule became effective as of March 8, 2021.  The Department has appealed the district court's decision.  The Department continues to believe that the 2021 IC Rule does not fully comport with the FLSA’s text and purpose as interpreted by courts and has proposed to rescind the 2021 IC rule and set forth an analysis for determining employee or independent contractor status under the Act that is more consistent with existing judicial precedent and the Department’s longstanding guidance prior to the 2021 IC rule.  The Department published an NPRM on October 13, 2022.

 
Agency: Department of Labor(DOL)  Priority: Economically Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
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  08/00/2023 
Regulatory Flexibility Analysis Required: No  Government Levels Affected: Undetermined 
Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Daniel Navarrete
Acting Director of the Division of Regulations, Legislation, and Interpretation
Department of Labor
Wage and Hour Division
200 Constitution Avenue NW, FP Building, Room S-3502,
Washington, DC 20210
Phone:202 693-0406