The U.S. Department of Labor announced it will move to rescind the Biden administration’s 2024 independent contractor rule on Friday, according to a document set to be published in the Federal Register.
DOL’s Wage and Hour Division looks to return to the “economic reality test” for determining whether a worker is an independent contractor under the Fair Labor Standards Act. The economic reality test was previously adopted in 2021 during President Donald Trump’s first term.
DOL also would use that analysis in implementing the Family and Medical Leave Act and the Migrant and Seasonal Agricultural Worker Protection Act, it said.
The rule would replace the Biden-era “totality-of-the-circumstances” framework used to determine whether a worker was an independent contractor or an employee. At the time, SHRM said the 2024 rule “fosters ambiguity, deterring businesses from extending essential training to independent workers, a detrimental scenario for both parties involved.”
A 60-day public comment period begins Friday and ends on April 28. DOL would then need to adopt a final rule.
Editor’s note: This story is developing and will be updated.