Ted Hollis, an Indianapolis-based partner in Quarles & Brady’s Labor & Employment Practice Group, spoke with International Employment Lawyer on the Department of Labor (DOL) Wage and Hour Division’s proposed rule that would rescind the Biden administration’s 2024 final rule that determines independent contractor status and replace it with an analysis similar to the one adopted during President Trump’s first term.
Hollis noted that the DOL views the 2024 final rule as misaligned with U.S. Supreme Court precedent and the modern economy. While the proposed rule may come as a relief to businesses, Hollis warns that employers still need to pay careful regard to state laws, many of which provide protections far greater than the federal standard. He also said that businesses that use or are considering independent contractors should evaluate how their arrangements fare under the proposed core factors, paying special attention to who controls schedules, work methods and the ability to work for others.
An excerpt below:
“The proposal clarifies that ‘economic dependence’ means dependence for work in the way a typical employee depends on an employer – not dependence for income in general,” explains Quarles & Brady’s Ted Hollis.
“Finally, the DOL views the 2024 rule as misaligned with Supreme Court precedent and the modern economy, noting that certain traditional factors may have less predictive power in a knowledge-based economy with shorter job tenures.”
Hollis says the...
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