Samuel Estreicher is Dwight D. Opperman Professor of Law and Director of the Center for Labor and Employment Law, New York University School of Law. New DOL Regulation on Employees Versus Independent Contractors Restores Multifactor Test While Leaving Some Important Questions Unanswered
On Jan. 1, 2024, the Biden administration's DOL issued its final regulation on who is an employee versus who is an independent contractor. The regulation rescinds the Trump administration rule because, according to the administration, it emphasized two factors in a manner unsupported by the agency's traditional multifactor view and case law, and was inconsistent with the DOL's emphasis on "economic dependence" as a principal guidepost.
January 30, 2024 at 10:02 AM
6 minute read
On Jan. 1, 2024, the Biden administration's Department of Labor (DOL) issued its final regulation on who is an employee versus who is an independent contractor, Part 795 – Employee or Independent Contractor Classification under the Fair Labor Standards Act, 89 F.R. 1741, No. 7 (Jan. 10, 2024). The regulation rescinds the Trump administration rule because, according to the administration, it emphasized two factors—employer control over how the work is done and opportunity to engage in entrepreneurial activity—in a manner unsupported by the agency's traditional multifactor view and case law, and was inconsistent with the DOL's emphasis on "economic dependence" as a principal guidepost.
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