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DOL Contractor Rule

In the waning days of the first Trump administration, the U.S. Department of Labor (DOL) finalized a regulation establishing the test to be used by DOL to determine whether a worker is an independent contractor or employee under the Fair Labor Standards Act, which governs overtime and minimum wage. That regulation set forth a multi-factor test that emphasized two core factors that made the determination more predictable. The Biden administration replaced the DOL regulation with an equally weighted, multi-factor test but included commentary that leans toward a finding of employee status.

President-elect Trump’s Secretary of Labor nominee will take over at a time where the newer Biden administration rule is embroiled in legal challenges. The President-elect may have multiple paths toward reinstituting a simpler, more predictable test favored by businesses.

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News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.

DOL Contractor Rule

In the waning days of the first Trump administration, the U.S. Department of Labor (DOL) finalized a regulation establishing the test to be used by DOL to determine whether a worker is an independent contractor or employee under the Fair Labor Standards Act, which governs overtime and minimum wage. That regulation set forth a multi-factor test that emphasized two core factors that made the determination more predictable. The Biden administration replaced the DOL regulation with an equally weighted, multi-factor test but included commentary that leans toward a finding of employee status.

President-elect Trump’s Secretary of Labor nominee will take over at a time where the newer Biden administration rule is embroiled in legal challenges. The President-elect may have multiple paths toward reinstituting a simpler, more predictable test favored by businesses.

News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.