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DOL Proposes New Effective Date for Independent Contractor Rule

The Department of Labor (DOL) has made a proposal to delay the effective date of the Independent Contractor final rules. The proposed new effective date is May 7, 2021, a delay of 60 days from the original date of March 8, 2021, when the rule was to go into effect.

The final rule was originally introduced in January 2021 and clarified how employers determine whether a worker should be defined as an employee or contractor. Classification of these individuals is important in determining what employment laws apply to these individuals, as well as determining benefits they may be required to offer.

Until the final rule determination is made effective, employers will remain in limbo and are not required to follow any of the established rules. However, it is likely that the rule will go into effect and, as such, employers should become familiar with the requirements and employment classifications contained under the rule.

Read the Legal Update.

Contact your Cowden representative for more information on this or other compliance issues.