As expected, the outgoing Trump Administration’s Department of Labor (DOL) has published a final interpretive rule outlining the factors DOL looks at in determining whether an individual should be classified as an employee or independent contractor under the Fair Labor Standards Act (FLSA). And while the new rule provides welcome guidance to employers in making FLSA classification decisions, we think it is very likely to be put on hold by the incoming Biden Administration before the rule’s March 8, 2021, effective date, in essence maintaining the status quo for the foreseeable future.
The final rule is nearly identical to that proposed by DOL last September, with the notable exception that it now includes six examples demonstrating application of the classification factors.
Members of the Center for Workplace Compliance (CWC) can read more here.