The Department of Labor (DOL) has proposed a new rule that would make it easier for businesses to classify workers as independent contractors rather than employees under the Fair Labor Standards Act. The proposed rule would rescind the DOL’s 2024 final rule that, among other things, weighed six factors in determining a worker’s classification. The new analysis of worker classification would be similar to a rule adopted in 2021. That rule focused on two core factors to help determine if workers are economically dependent on an employer for work or are in business for themselves. Keep in mind that the IRS applies its own test to analyze worker classification for tax purposes. Stay tuned.
