Department of Labor’s New I.C. Rule No Longer on Ice: What Employers Need to Know About Determining Independent Contractor Status Under the Fair Labor Standards Act


Introduction -

After receiving over 55,000 comments regarding the proposed rule introduced in 2022, the U.S. Department of Labor (DOL) finalized a new independent contractor test under the Fair Labor Standards Act (FLSA). The rule addresses how to determine whether a worker is properly classified as an employee or independent contractor under the FLSA. This six-factor test is non-exhaustive, looks to the totality of the circumstances, and weighs all factors equally. The final rule goes into effect March 11, 2024. This rule should provide employers with more consistency between the analysis applied by the majority of courts and the DOL. However, while Florida’s wage and hour laws generally defer to the FLSA’s analysis of when a worker is considered an employee or an independent contractor, employers still need to be mindful of any other state laws that provide stricter tests to determine worker classifications.

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