The Department Of Labor Believes Its Proposed Rule Change Could “Reduce Worker Misclassification, Reduce Litigation, Increase Efficiency And Job Satisfaction And Flexibility.”
The Fair Labor Standards Act was passed more than 80 years ago, and since then, the United States Department of Labor has struggled to define the term “independent contractor.” The Supreme Court of the United States has not spoken on the issue in over a half-century, with both workers and employers having to parse through dense case law for guidance on the classification of laborers as employees or independent contractors.
On September 22, 2020, the Department of Labor released a proposed rule change, which seeks to clarify the distinction between employee and independent contractor. The proposed change is currently open for public comment, and once finalized, will “codify a simple, clear approach that can be applied consistently nationwide.”