Department of Labor to Revisit Employee Classification Rules

The Department of Labor is planning to begin a rulemaking process in order to determine employee or independent contractor status under the FLSA. They are planning to hold public forums in June in order to hear from workers and employers about their experiences with employee or independent contractor classification. They believe that input from all interested parties will ultimately make the rule better.

Misclassification of employees as independent contractors is a serious problem that affects workers, employers, and the economy as a whole. Employees who are misclassified are denied basic workplace protections, which makes it harder for them to support themselves and their families.

The Department of Labor published a rule on this issue during the prior Administration, but it was delayed and then withdrawn. The Department has now committed to conducting rulemaking on determining employee or independent contractor status under the FLSA.

Read the full story from the DOL here.

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Alex Steeno

Alex Steeno

Senior industry analyst, adviser of multiple hypergrowth agencies, SaaS, and tech-enabled service platforms, Alex Steeno regularly contributes insights related to industry trends, growth marketing, and management consulting.

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