The U.S. Department of Labor’s (DOL) new independent contractor regulations, effective March 11, 2024, replace a previous set of regulations issued under the Trump administration in 2021; however, the new rule is not really new, it merely codifies the economic reality test that courts have applied since the 1940s. The 2021 regulation made it easier for employers to classify their workers as independent contractors and avoid having to comply with federal wage and hour laws. The new rule restores federal wage and hour protection to workers that may have been excluded under the 2021 rule—primarily gig workers.
The new regulations face several challenges, both from litigation and from possible legislative action. It remains to be seen whether the regulations will survive, but at least for the present, they are in effect.
