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DOL Announces Proposed Rule on Classifying Employees, Independent Contractors; Seeks to Return to Longstanding Interpretation
Wage and Hour Division [WHD], U.S. Department of Labor [DOL] Link to more items from this source
[Guidance Overview]
Oct. 11, 2022

"[T]he proposed rule would do the following: [1] Align the department's approach with courts' FLSA interpretation and the economic reality test. [2] Restore the multifactor, totality-of-the-circumstances analysis to determine whether a worker is an employee or an independent contractor under the FLSA. [3] Ensure that all factors are analyzed without assigning a predetermined weight to a particular factor or set of factors. [4] Revert to the longstanding interpretation of the economic reality factors. These factors include the investment, control and opportunity for profit or loss factors. The integral factor, which considers whether the work is integral to the employer's business, is also included. [5] Assist with the proper classification of employees and independent contractors under the FLSA. [6] Rescind the 2021 Independent Contractor Rule."

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