{"id":5523,"date":"2024-01-12T10:11:17","date_gmt":"2024-01-12T15:11:17","guid":{"rendered":"https:\/\/www.lindabury.com\/firm\/?p=5523"},"modified":"2025-02-05T10:26:19","modified_gmt":"2025-02-05T15:26:19","slug":"usdol-issues-final-rule-restoring-the-narrower-economic-reality-standard-for-independent-contractor-status-under-the-flsa","status":"publish","type":"post","link":"https:\/\/www.lindabury.com\/firm\/insights\/usdol-issues-final-rule-restoring-the-narrower-economic-reality-standard-for-independent-contractor-status-under-the-flsa.html","title":{"rendered":"USDOL Issues Final Rule Restoring the Narrower &#8220;Economic Reality&#8221; Standard for Independent Contractor Status Under the FLSA"},"content":{"rendered":"<p>Effective March 11, 2024, the U. S. Department of Labor (DOL) will implement its final rule, <em>Employee or Independent Contractor Classification Under the Fair Labor Standards Act, <\/em>rescinding the 2021 Trump era Independent Contractor Rule that made it easier for employers to establish independent contractor status.\u00a0 The final rule substantially mirrors the Department\u2019s proposed rule issued in October 2022.<\/p>\n<p><strong>Reaffirmation of the Economic Realities Test:<\/strong><\/p>\n<p>As noted in the DOL\u2019s accompanying FAQ found <a href=\"https:\/\/www.dol.gov\/agencies\/whd\/flsa\/misclassification\/rulemaking\/faqs\">here<\/a>,\u00a0the final rule \u201ccontinues to affirm that a worker is not an independent contractor if they are, as matter of economic reality, economically dependent on an employer for work.\u201d\u00a0 The final rule reverts back to the narrower \u201ctotality of the circumstances\u201d economic reality test in effect prior to 2021 that applied the following six non-exhaustive factors to analyze employee or independent contractor status:<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.lindabury.com\/firm\/insights\/usdol-issues-final-rule-restoring-the-narrower-economic-reality-standard-for-independent-contractor-status-under-the-flsa.html\"  title=\"Continue Reading USDOL Issues Final Rule Restoring the Narrower &#8220;Economic Reality&#8221; Standard for Independent Contractor Status Under the FLSA\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Effective March 11, 2024, the U. S. Department of Labor (DOL) will implement its final rule, Employee or Independent Contractor Classification Under the Fair Labor Standards Act, rescinding the 2021 Trump era Independent Contractor Rule that made it easier for employers to establish independent contractor status.\u00a0 The final rule substantially mirrors the Department\u2019s proposed rule [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[65,247],"tags":[],"coauthors":[139],"class_list":["post-5523","post","type-post","status-publish","format-standard","hentry","category-insights","category-labor-employment-insights"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>USDOL Issues Final Rule Restoring the Narrower &quot;Economic Reality&quot; Standard for Independent Contractor Status Under the FLSA &#8212; January 12, 2024 &#8212; Lindabury, McCormick, Estabrook &amp; Cooper, P.C. 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