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January 26, 2024

DOL Releases Details of Independent Contractor Classification Rule

On January 9, 2024, the U.S. Department of Labor released a final version of the Rule implementing the “Employee or Independent Contractor Classification Under the Fair Labor Standards Act.”  The Rule has a six-factor test, which includes: (1) an employee’s opportunity for profit or loss;  (2) investments made by the employee and the potential employer; (3) the degree of permanence of the work relationship; (4) the degree of control the employer has over the employee’s work; (5) the extent to which work performed is integral to the employer’s business, and (6) the use of the employee’s skill and initiative.  The goal of the Rule is to provide  greater clarity and consistency in determining a worker’s status.  The Rule is set to become effective March 11, 2024; however, the Rule is being challenged in federal court.

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