A new U.S. Department of Labor (DOL) rule offers guidance for employers related to determining whether to classify a worker as an employee or independent contractor under the Fair Labor Standards Act (FLSA).
The DOL said the new regulation (RIN 1235-AA43), published in the Federal Register on Wednesday, Jan. 10, returns to an "economic realty test" for determining workers' status under the FLSA.
"This rule will help protect workers, especially those facing the greatest risk of exploitation, by making sure they are classified properly and that they receive the wages they've earned,” acting Labor secretary Julie Su said in a news release.
The new rule rescinds the 2021 Independent Contractor Rule that the DOL believes is not consistent with the law and longstanding judicial precedent. The new rule becomes effective Monday, March 11. Learn more.