Update: The Department of Labor’s Independent Contractor Rule is in Effect

by Tessa Doyle

As an update to our previous blog post on the Department of Labor’s (DOL) rule on independent contractor classifications, the DOL’s final rule (“Final Rule”) is officially in effect as of March 11, 2024.

As a reminder, the Final Rule repeals the 2021 “core factors” test and looks at the “totality of the circumstances” of six economic realities factors to determine whether a worker is classified as an employee or an independent contractor under the Fair Labor Standards Act.

Employers should carefully analyze independent contractor/employee classifications, and update their classification policies and any independent contractor agreements accordingly.

For a full understanding of employer’s obligations under the Final Rule, view our previous blog post.