While the Trump administration's independent contractor standard under the Fair Labor Standards Act (FLSA) is still in effect, the Biden administration might not be enforcing it, House Republican leaders told the U.S. Department of Labor's (DOL's) Acting Secretary Julie Su. We've gathered articles on the news from SHRM Online and other media outlets.
Different Standards
In January 2021, the DOL issued a final rule entitled "Independent Contractor Status Under the FLSA." This rule emphasized two core factors for determining if someone is an independent contractor: a worker's control over the individual's work and the person's opportunity for profit or loss.
If these factors are not clear, the rule includes three guidepost factors consisting of: 1) the amount of specialized skill required for the work that the potential employer does not provide; 2) the degree of permanence of the working relationship, focusing on the continuity and duration of the relationship and weighing toward independent contractor status if the relationship is definite in duration or sporadic; and 3) whether the work performed is part of an integrated unit of production.
The Biden administration's independent contractor proposed rule, issued October 2022, would implement a multiple-factor test where the weight of each factor depends on the facts of the case and where additional factors may be relevant, the letter noted.
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