Labor Dept. wants to withdraw Trump-era proposed independent contractor definition

March 15, 2021

After publishing in early January a final rule to clarify the definition of independent contractor within the Fair Labor Standards Act, the Department of Labor is now proposing to withdraw the rule and keep FLSA’s current independent contractor definition unchanged.

The rule was first set to take effect March 8, but DOL delayed the rule’s effective date to May 7 when the Biden Administration was sworn in.

In a notice of proposed rulemaking published in the Federal Register Friday, the department says it wants to withdraw the rule because “the department questions whether the rule is fully aligned with the FLSA’s text and purpose or case law describing and applying the economic realities test.”