FOLLOW US

America January 9, 2024 3 mins read

DOL Drops Bombshell with Final Independent Contractor Rule

America ı By Rochdi Rais

0 Comments

DOL Drops Bombshell with Final Independent Contractor Rule

In a stunning development, the U.S. Department of Labor (DOL) has unleashed its highly anticipated final rule, sending shockwaves through the employment landscape. The rule, officially titled "Employee or Independent Contractor Classification Under the Fair Labor Standards Act," marks a significant shift in how workers can be classified and is poised to disrupt the status quo.

A Game-Changer Six-Factor Test

The crux of the matter lies in the establishment of a groundbreaking six-factor test aimed at determining whether a worker should be classified as an employee or an independent contractor. This seismic shift is expected to redefine the boundaries between employer and employee relationships. The DOL has set the stage for a radical departure from the previous administration's narrow focus, introducing factors like opportunity for profit or loss, investments, permanence of the work relationship, control exerted by the employer, the integral nature of the work to the employer's business, and the worker's skill and initiative.

March 11: The D-Day for the Rule

Set to be published in the Federal Register on Wednesday, the rule is slated to take effect on March 11, 2024, adding urgency to its implications. Acting Labor Secretary Julie Su, anticipating the impact, emphasized the rule's role in aligning with the economic realities test developed by courts over decades. Su asserted that the rule would bring much-needed clarity and consistency to the determination of a worker's status, benefiting both workers and businesses navigating the complexities of the Fair Labor Standards Act.

DOL Final Independent Contractor Rule: Repealing the Trump-Era Narrow Vision

In a bold move, the final rule rescinds the previous administration's independent contractor rule issued under former President Donald Trump. That earlier rule, which narrowly focused on just two factors of the economic realities test, never saw the light of day. The DOL's course correction aligns with a broader vision, echoing the sentiments of more than 54,000 comments received during the rulemaking process.

Addressing Concerns about Legitimate Independent Contractors

Acting Labor Secretary Su, keenly aware of concerns raised in public discourse, addressed the rule's impact on legitimate independent contractors. Assuring that the rule won't hinder those truly in business for themselves, Su highlighted the essential role played by independent contractors in the economy.

DOL Final Independent Contractor Rule: No ABC Test, No California-style Classification

Dousing speculation, the DOL clarified that the final rule does not adopt an ABC test akin to the one used in California. Wage and Hour Division Administrator Jessica Looman underscored this point, distinguishing the rule from other jurisdictional tests under different statutory frameworks.

A Rocky Road to Finalization

The journey to this final rule has been fraught with delays and legal entanglements. Originally slated for May 2022, the rule's arrival was repeatedly pushed back in subsequent regulatory agendas. The DOL's attempt at rulemaking in May 2021 faced setbacks when a Texas federal court invalidated the withdrawal of the Trump-era rule, citing procedural lapses. The subsequent appeal, currently on hold in the Fifth Circuit, adds a layer of uncertainty.

Ready for Battle: DOL's Confidence Amidst Anticipated Challenges

Amidst speculation of potential legal challenges, Solicitor of Labor Seema Nanda expressed confidence in the rule's robustness. Nanda highlighted the careful consideration of relevant case law under the Fair Labor Standards Act during the rule's development and asserted the DOL's readiness to defend it against any challenges.

In a legal landscape that's no stranger to courtroom showdowns, this latest move by the DOL is bound to reverberate, leaving employers, workers, and legal experts on the edge of their seats.

Previous Article

Evanston Insurance Co. Faces $5M Settlement

Read More
2773 Posts

Rochdi Rais

Rochdi Rais is the Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
America October 02, 2026
Kaiser Permanente Layoffs Eliminate 147 Jobs Across California
By – Rachel Moore
America October 02, 2026
Nexfibre’s $2.7B Deal Faces U.K. Competition Roadblock
By – Tyler Brooks
America October 2, 2026
Operation Epic Fury: Trump Warns Iran…

Operation Epic Fury remains central to the Trump administration’s account…

By – Jackie Allen
America October 2, 2026
Capitol Police Plaque Lawsuit Dismissal Ends…

Sometimes a legal fight isn’t about the money or the…

By – Tyler Brooks
America October 2, 2026
G7’s Release of 100M Barrels of…

What Truckers and Consumers Need to Know The G7’s 100-million-barrel…

By – Samuel Lopez
America October 2, 2026
Halle Berry Hit with Temporary Restraining…

What the Court Order Signals A Los Angeles judge granted…

By – Samuel Lopez
America October 2, 2026
Killed by in-laws: New York Times…

Jonathan McKinsey, 40, was killed by his elderly in-laws. They…

By – Jackie Allen
America October 1, 2026
Government Spending: Trump Administration Moves to…

 The Trump administration is moving to cancel nearly $1 billion…

By – Jackie Allen
America October 1, 2026
Government Spending: Trump Administration Moves to…

 The Trump administration is moving to cancel nearly $1 billion…

By – Jackie Allen
America October 1, 2026
Lyft $272.5M Settlement Marks California’s Largest…

Some settlements fade quietly into legal history. This one is…

By – Tyler Brooks
America October 1, 2026
Google Launches Project Suncatcher, Betting on…

Sometimes the boldest ideas start small — in this case,…

By – Tyler Brooks
America October 1, 2026
TJ Maxx Closing Three More Stores…

Empty storefronts have become almost a recurring chapter in retail’s…

By – Rachel Moore
America October 1, 2026
$500 Obamacare Refund Checks Land in…

Not every government payment lands evenly across the map —…

By – Rachel Moore
America October 1, 2026
Zurich Beazley Takeover Officially Closes, Creating…

Months of regulatory hurdles, court hearings and shareholder maneuvering have…

By – Rachel Moore
America October 1, 2026
JPMorgan Executive Renews Countersuit After Ex-Banker’s…

The “sex slave” allegations involving JPMorgan Chase executive Lorna Hajdini…

By – Jackie Allen
America October 1, 2026
Diesel Crisis: Louisiana Relief Meets New…

Louisiana’s diesel crisis has entered October with emergency relief still…

By – Michallie Harrison
America September 30, 2026
Chad Lowe’s Daughter Fiona Dies at…

Actor Chad Lowe and his wife, producer Kim Painter, are mourning the…

By – Jackie Allen
America September 29, 2026
Clone Saga could replace Spider-Noir as…

The Clone Saga could be coming to television as Sony…

By – Jackie Allen
America September 29, 2026
Unabomber: Russell Crowe true-crime thriller surges…

“Unabomber,” Netflix’s new true-crime drama starring Russell Crowe and Jacob…

By – Jackie Allen
America September 29, 2026
Cornell University case draws renewed scrutiny…

ITHACA, N.Y. — A key piece of evidence in the…

By – Jackie Allen
America September 30, 2026
Arnold Schwarzenegger Heads to Jury Trial…

What the Jury Will Decide Schwarzenegger has conceded negligence in…

By – Samuel Lopez
America September 30, 2026
Oklahoma Judge Strips Secrecy From 11…

Inside the Hursh Courtroom Showdown A judge removed the confidential…

By – Samuel Lopez
America September 30, 2026
AI Is Creating New Losses Faster…

What Policyholders Need to Know Deepfakes and misinformation dominate reported…

By – Samuel Lopez
America September 30, 2026
California ‘Kelvin Wave’ Phenomena Could Supercharge…

What Coastal Homeowners Need to Know A massive El Niño-linked…

By – Samuel Lopez
America September 30, 2026
Queen and David Bowie’s Copyright Dispute…

What the Copyright Record Actually Shows Queen and David Bowie…

By – Samuel Lopez
America September 30, 2026
Wladimir Klitschko Moves to Protect Daughter…

What the Court Filing Reveals Klitschko wants immediate legal authority…

By – Samuel Lopez
America September 29, 2026
Trump Launches America.gov AI Portal That…

What Americans Need to Know gov is now an AI-powered…

By – Samuel Lopez
America September 28, 2026
Pope Leo XIV Condemns France’s New…

What Readers Should Know Pope Leo XIV used his visit…

By – Samuel Lopez
America September 27, 2026
Strangers Collected $30 Million In ‘Illegal…

What You Need to Know 1. George A. Neukom Jr.’s estate…

By – Samuel Lopez
America September 26, 2026
Princess Diaries Star Heather Matarazzo Says…

WHY THIS MATTERS Heather Matarazzo just admitted something most working…

By – Samuel Lopez
America September 24, 2026
California’s $11 Billion Undocumented Immigrant Benefits…

By Samuel López | USA Herald SACRAMENTO – California is…

By – Samuel Lopez
America September 22, 2026
Hayden Panettiere’s Cause of Death Confirms…

What the Toxicology Findings Tell Us Hayden Panettiere’s death has…

By – Samuel Lopez
America September 28, 2026
JJ McCarthy Trade Sends Former First-Rounder…

Two years ago, a franchise spent a top-10 pick on…

By – Tyler Brooks
America September 26, 2026
New York Sues Polymarket Claiming Prediction…

What This Fight Is Really About New York says Polymarket…

By – Samuel Lopez
America September 24, 2026
New York Sues Polymarket Over Alleged…

What’s Riding on the Bet New York says Polymarket’s sports…

By – Samuel Lopez
America September 23, 2026
Roblox widow alleges $6 million scam,…

The Roblox widow says a former companion took $6 million…

By – Jackie Allen
America September 22, 2026
Network Traffic Challenges May be Reshaped…

Network traffic has traditionally moved in one dominant direction: from…

By – Jackie Allen
America September 21, 2026
Gilbert Goons Defendant Arrested Again for…

A Gilbert Goons defendant awaiting trial in the 2023 death…

By – Jackie Allen

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter