Update: Regulatory Freeze Includes Independent Contractor Classification Changes

Sherman & Howard L.L.C.
Contact

Sherman & Howard L.L.C.

A White House Memorandum effecting a freeze on non-emergency rules and regulations pending review by the new administration includes a halt to the independent contractor classification changes set to go into effect March 8, 2021. As it relates to this rule (a Final Rule published in the Federal Register that has not taken effect), the Memorandum requests postponing the effective date for 60 days from the date of the January 20, 2021, Memorandum, with further delay considered for additional review and comment periods.  

The classification changes were introduced in a Final Rule to clarify and streamline the analysis for the first time under federal law to determine employee or independent contractor status by focusing the test on two “core factors” instead of the lengthy six-factor “economic realities” test. The new administration will review the Final Rule and likely issue its own proposed rule reflecting its stance on worker protections.  The Biden Administration has instead discussed a federal standard modeled after the “ABC test.”  For reference, California uses the ABC test, which considers workers employees as a default, and all parts of its stringent analysis must be established to prove independent contractor status.  

For now, the Memorandum indicates the new administration will focus its immediate attention on emergency rules. We will continue to track the progress of a new independent contractor test-taking effect.

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.

© Sherman & Howard L.L.C. | Attorney Advertising

Written by:

Sherman & Howard L.L.C.
Contact
more
less

Sherman & Howard L.L.C. on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.