What DOL Worker Classification Rule Means For Employers

Law360 (January 11, 2021, 6:27 PM EST) -- In one of its first acts of the year, the U.S. Department of Labor on Jan. 6 issued its final regulations for the classification of independent contractors.[1]

This final rule will take effect 60 days after publication on March 8 and is substantially the same as the draft proposed by the DOL in September 2020.

However, it adds significant clarification for two of the factors used in making the classification determination.

Economic Realities Test

The DOL has adopted the economic realities test to determine if a worker can be classified as an independent contractor:

The ultimate inquiry is whether, as a...

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