Law & Order

New U.S. Department of Labor “Independent Contractor” Rule to be Withdrawn

By SEMA Washington, D.C., Staff

The Biden Administration intends to withdraw the independent contractor rule issued in the closing days of the Trump Administration. The U.S. Department of Labor (DOL) issued a proposed rule to rescind the rule, questioning whether the rule fully aligned with the Fair Labor Standards Act, court rulings and application of the economic realities test.

The deadline for public comments is April 12. The DOL will then have a chance to issue a new rule or simply withdraw the rule for an indefinite time-period (with a return to the standards existing before the Trump rule took effect).

The rule published in January concludes that an individual is an independent contractor, as distinguished from an “employee,” if the individual is in business for him or herself as a matter of economic reality. The rule then identifies five factors for defining economic dependence, including the nature and degree of the worker’s control over the work and the worker’s opportunity for profit or loss.

Find out more information about the independent contractor rule subject to withdrawal.

Questions? Contact Stuart Gosswein at