U.S. Department of Labor Independent Contractor Final Rulemaking
On Jan. 10, 2024, the U.S. Department of Labor (DOL) Wage and Hour Division published its final Independent Contractor (IC) rule, Employee or Independent Contractor Classification Under the Fair Labor Standards Act. The rulemaking, which AAPL has been tracking for members since its 2022 proposal, sets a new federal test under the Fair Labor Standards Act for determining whether a worker is properly classified as an independent contractor under circumstances where disputes arise. The new DOL rule, which replaces a 2021 Trump-era rule that put greater weight on core factors viewed as more favorable to IC status, utilizes a six-factor “totality of the circumstances” economic realities test in which all factors have equal weight. For a more comprehensive analysis of the rulemaking, how it may be applied by courts, and its implications for businesses and workers, please see the AAPL Governmental Affairs Fact Sheet below.