Capitol Correspondence - 02.23.21

DOL Delays Implementation of Independent Contractor Rule until May 7

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Following President Biden’s move to institute a regulatory freeze of recently implemented regulations to enable a full review of these regulations, the U.S. Department of Labor (DOL) issued a proposed rule to delay the implementation of the Independent Contractor Rule. Finalized on January 7, just two weeks before President Biden took office, the Independent Contractor Rule was originally scheduled to take effect on March 8, 2021. The proposed new date for implementation will be May 7, 2021, with comments on the delay due on February 24.

Because the Independent Contractor Rule is now under a regulatory freeze pending review, this affects DOL guidance that referred back to this rule. As announced by the Wage and Hour Division within DOL: “Opinion Letter FLSA2019-6 addressed the same issue under consideration by the Department—independent contractor status under the FLSA. Consistent with its proposed delay of the final rule, WHD is withdrawing this opinion letter.”

We will keep members informed of additional developments on this issue.