In January 2021, the Independent Contractor Rule (Independent Contractor Rule or January 2021 Rule) was created to clarify who is an independent contractor versus an employee under the Fair Labor Standards Act (FLSA). Per the Department of Labor (DOL), “An individual is an independent contractor, as distinguished from an ’employee’ under the Act, if the individual is, as a matter of economic reality, in business for him- or herself.”
On March 2, 2021, the DOL delayed the effective date of the Independent Contractor Final Rule from March 8, 2021 to May 7, 2021. The DOL states, “Allowing more time for consideration of [the rule] is reasonable given the significant and complex issues [the rule] raises, including whether [the rule] is consistent with the statutory intent to broadly cover workers as employees as well as the costs and benefits of the rule, including its effect on workers.”
To read more about the Final Rule, click here, or here to read the entire Independent Contractor Rule.
If you or your company have questions or a legal matter related to your construction, employment or labor law issues please contact Anderson Jones Attorneys by email or phone at (919) 277-2541.