DOL Delays Effective Date of Test for Determining Independent Contractor Status

Hinshaw & Culbertson - Employment Law Observer
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Hinshaw & Culbertson - Employment Law Observer

Under the administration of former President Donald Trump, the Department of Labor (DOL) proposed new regulations to simplify the test for determining whether a worker is an employee or independent contractor. The regulations were set to go into effect on March 8, 2021.

Now, under the Biden administration, the DOL has pushed back the test's effective date to May 7, 2021. The delay is the result of a regulatory freeze issued by the Biden administration on January 20, 2021. According to the Wage and Hour Division of the DOL, it will use the additional time to review and consider the proposed rule.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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