DOL Will No Longer Apply 2024 Independent Contractor Rule

The U.S. Department of Labor (DOL) has officially confirmed that it will no longer apply the 2024 independent contractor rule adopted during the Biden Administration to determine whether a worker is an employee or independent contractor under the Fair Labor Standards Act (FLSA). The DOL has published new guidance for its investigators on this issue, reinstated a 2019 Opinion Letter on applying the independent contractor test to a virtual marketplace company, and reissued the 2008 Fact Sheet on independent contractors which previously governed this analysis.

It is not clear whether the DOL will eventually adopt a new rule. But, in the meantime, investigators will use the above materials to guide their investigations. This is good news as the 2024 rule set a high bar for employers seeking to prove workers are independent contractors. 

However, the independent contractor analysis remains complicated especially because Nevada and its administrative agencies apply different tests and emphasize different factors. We encourage you to seek legal counsel when it comes to independent contractors and are available to assist you. 

KZA Employer Report articles are for general information only; they are not intended and should not be construed to be legal advice. Reading or replying to such articles does not establish an attorney-client relationship. In addition, because the subject matters and applicable laws discussed in Employer Report articles are often in a state of change and not always applicable to every type of business entity or organization, readers should consult with counsel before making decisions based on the same.