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DOL Proposes to Rescind Independent Contractor Rule

On March 11, 2021, the U.S. Department of Labor (DOL) announced a proposal to rescind the Independent Contractor final rule. The rule would require employers to use a certain financial test to determine whether a worker can be classified as an independent contractor or an employee. The rule was originally published in January, but its effective date has been delayed as the result of a freeze the Biden administration ordered on regulatory changes adopted late into the previous administration.

As of now, the rescission of the rule is only proposed and the DOL is considering public comment until April 12, 2021. Until then, employers should review updates from the DOL.

The Legal Update provides additional information on the rescission of the Independent Contractor rule. Cowden is here to help with understanding this update and the potential impact on your organization.

Read the Legal Update.

Please consult your Cowden team for any questions or assistance.