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Department of Labor Proposes to Reinstate Economic Realities Test for Independent Contractors Under FLSA


On Oct. 11, the United States Department of Labor (DOL) issued a proposed rule that would change the definition of “independent contractor” for companies, a modification that could impact worker classification across various industries. Essentially, the Notice of Proposed Rulemaking (NPRM) repeals the Trump administration’s independent contractor rule and reinstates the principal factors used in the “economic realities” test. However, the NPRM’s analysis of these factors may affect a worker’s classification going forward.


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