From Transport Topics.
The U.S. Department of Labor has issued a final rule revising its interpretation of independent contractor status under the Fair Labor Standards Act that it said will “promote certainty for stakeholders, reduce litigation and encourage innovation in the economy.”
The final rule explains that independent contractors are workers who, as a matter of economic reality, are in business for themselves as opposed to being economically dependent on the potential employer for work.
“The rule sharpens this inquiry into five distinct factors, instead of the five or more overlapping factors used by most courts and previously the department,” the agency announced in a prepublication post on Jan. 6.
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