New! Analysis of the Department of Labor’s Proposed Independent Contractor Rule

New! Analysis of the Department of Labor’s
Proposed Independent Contractor Rule

On October 11, 2022 the Department of Labor issued a Notice of Proposed Rulemaking (NPRM) on determining independent contactor status. It appeared in the October 13, 2022 Federal Register.

The big picture: The overarching thrust of the NPRM is the concept of “economic dependence” and whether a worker is economically dependent on an employer for work, or in business for himself. Note that economic dependence is not defined by income or earnings, but rather whether the individual is dependent on the employer for the work in question.  

Why it matters: The NPRM includes a “totality of the circumstances” analysis. However, it does not provide a pre-determined weight or degree of importance to any of the factors in the economic realities test. In failing to do so, the NPRM provides little guidance as to how workers and businesses should apply those factors when they do not all point in the same direction. This is problematic because businesses and workers once again will not have clear guideposts as to how to properly classify a worker. On October 11, 2022 the Department of Labor issued a Notice of Proposed Rulemaking on determining independent contactor status. It appeared in the October 13, 2022 Federal Register. Click below to read the summary the U.S. Chamber of Commerce Employment Policy Division.

Learn more: Click here to read the summary the U.S. Chamber of Commerce Employment Policy Division compiled on the new regulation and feel free to email Marc Freedman, Vice President of Employment Policy at the U.S. Chamber of Commerce with any questions at mfreedman@uschamber.com.