DOL has published a proposed rule, Employee or Independent Contractor Classification Under the Fair Labor Standards Act, in the October 13, 2022, issue of the Federal Register. The proposed rule provides an analytical framework for determining whether a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA). This distinction is important because FLSA’s minimum wage and overtime pay protections do not apply to independent contractors. The advanced copy of the proposal showed the Department intends to rescind a previously-issued 2021 Independent Contractor Status rule and, among other changes, restore a “totality-of-the-circumstances” analysis to determining whether a worker is economically dependent upon an employer for work versus being in business for themself. Written comments should be submitted on or before November 28th. LeadingAge will analyze the proposed rule and its impact for aging services providers and share additional information in the weeks ahead.
