The U.S. Department of Labor wonât enforce the 2024 independent contractor rule while it works to reformulate the test as to how independent contractor status is determined under the Fair Labor Standards Act.
TheâŻNational Federation of Independent Business considers the 2024 rule, which consisted of a non-exhaustive multi-factor test, to place a difficult hurdle on independent contractor classification.
âNFIB is pleased that the DOL will not be using the 2024 rule in their enforcement efforts and will instead rely on a standard that provides small business owners and independent contractors the clarity they need and deserve,â Vice President of NFIBâs Small Business Legal Center Beth Milito said in a statement.
While the rule is under review, the DOL enforcement is reverting to the âeconomic realityâ framework, which asks whether the worker is an independent contractor in business for themselves, or an employee economically dependent on the business they serve.
