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DOL Changes Independent Contractor Standards

On January 9th, 2024, the Department of Labor (DOL) announced it has rescinded the 2021 independent contractor rule and replaced it with analysis they believe is consistent with caselaw.

According to the DOL, “The new independent contractor rule restores restores the multi-factor analysis used by courts for decades, ensuring that all relevant facts are analyzed to determine whether a worker is an employee or an independent contractor. The rule addresses six factors that guide the analysis of a worker’s relationship with an employer, including an opportunity for profit or loss a worker might have; the financial stake and nature of any resources a worker has invested in the work; the degree of performance of the work relationship; the degree of control the employer has over the person’s work; whether the work the person does is essential to the employer’s business; and a factor regarding the worker’s skill and initiative.

This rule takes effect March 11th, 2024. The DOL has published a list of FAQ’s. The final rule is 339 pages long, very technical, and likely to put you to sleep; but if you’d like to read it for yourself, here it is.

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