Advocacy Recommends that the DOL Reassess the Compliance Costs of Independent Contractor Rule for Small Business

On October 13, 2022, the Department of Labor (DOL) proposed a rule that would determine whether a worker is an independent contractor or employee under the Fair Labor Standards Act. The proposed rule would rescind a 2021 final rule which highlighted two core factors that were more probative and carried more weight in the analysis: the nature and degree of control over the work and a worker’s opportunity for profit or loss. With this new rule, DOL is returning to the traditional multi-factor economic reality test that analyzes the totality-of-the-circumstances in a business. On December 12, 2022, the Office of Advocacy submitted a comment letter to DOL on this proposed rule.

For more, read the public comment letter and fact sheet, which highlights Advocacy’s concerns and recommendations.