Capitol Correspondence - 01.16.24

DOL Finalizes Rule on Employee vs. Independent Contractor Classification

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Last week, the U.S. Department of Labor (DOL) announced the finalization of a rule that revises its interpretation of how to determine whether an individual is an employee or an independent contractor under the Fair Labor Standards Act (FLSA). The final rule, published on January 10, 2024, is set to become effective on March 11, 2024.

The rule, which rescinds the Independent Contractor Status Under the Fair Labor Standards Act rule (2021 IC Rule) published on January 7, 2021, aims to provide a more consistent analysis for determining employee or independent contractor status, aligning with longstanding judicial precedent related to the FLSA. ANCOR will provide further guidance on this final rule as we continue to analyze it.