Fair Labor Standards Final Rule on Employee/Independent Contractor Distinction

The Department of Labor is releasing its final rule on distinguishing employees from independent contractors for purposes of the Fair Labor Standards Act (FLSA).  The final rule becomes effective 60 days after its publication on 1/10/2024.  The rule is a reversion to longstanding analysis that preceded a 2021 rule that weighted two factors in what was formerly a totality of the circumstances assessment.  The final rule will impact a business’s liability for minimum wage and overtime as well as other provisions of the FLSA.  The publication places the rule in context of federal statutes, judicial decisions, and past regulatory action.  The document can be found here.  The proposed rule can be found here or here. Please contact our office if you have questions regarding your company’s use of contractors.