Department of Labor Withdraws Independent Contractor Rule
In January, we reported on a new Independent Contractor Rule which eased the classification process by clarifying the factors that determine when a worker is considered an independent contractor versus an employee under the Fair Labor Standards Act (“FLSA”). Following the election of the new administration, the effective date of the rule was delayed leading to anticipation that the rule would eventually be rescinded or modified.
As expected, on May 6 the Biden Administration withdrew the new rule effective immediately. As a result of the withdrawal of the new rule, nothing changes for employers regarding their employee classification procedures and workers’ rights to the minimum wage and overtime compensation protections of the Fair Labor Standards Act remain in effect.
If you would like additional guidance on how to navigate changes in employment law or any other employment issues, please reach out to your contact at Mansour Gavin or one of our Labor and Employment attorneys.