Unsurprisingly, Trump DOL Announces Intent to Withdraw Biden-Era IC Test: Next Steps for Employers

Unsurprisingly, the Trump Department of Labor has formally announced that it will rescind the 2024 Biden-era worker classification test for determining independent contractor status under the Fair Labor Standards Act (the DOL made this announcement even after it previously announced that it would no longer enforce the 2024 rule). As such, it has announced that it will enforce the FLSA in accordance with Fact Sheet #13, released in July of 2008. (until a new rule is developed). As such, it is "the total activity or situation" which controls. Factors that are relevant include the nature and degree of control by the employer, the permanency of the relationship, the worker's opportunities for profit and loss, etc. The absence of a formal employment agreement is immaterial. The DOL has announced that it intends to revamp the rule and that it will likely be deregulatory in nature. Companies, however, should also be sure to consider state-level rules governing worker classification, which continue to be in effect regardless of the DOL standard. For more information on the rules governing worker classification, visit Tax Facts Online. Read More: Link to Q8723.