The Labor Department has sent its final independent contractor rule to the Office of Management and Budget for review.
DOL had projected that it would finalize the rule in May.
OMB reviews can take up to 90 days.
The notice on OMB’s website states that the DOL “continues to believe that the 2021 IC Rule does not fully comport with the FLSA’s text and purpose as interpreted by courts and has proposed to rescind the 2021 IC rule and set forth an analysis for determining employee or independent contractor status under the Act that is more consistent with existing judicial precedent and the Department’s longstanding guidance prior to the 2021 IC rule.”
The Financial Services Institute has maintained that the new rule should be withdrawn.
The DOL released on Oct. 11 a proposed rule that would replace the existing 2021 test under the Fair Labor Standards Act used to determine worker classification as either an independent contractor or an employee.