SBA Seeks Public Feedback On Independent Contractor Classification
The Department of Labor’s Wage and Hour Division is reviewing regulations addressing the distinction between an employee and an independent contractor under the Fair Labor Standards Act (FLSA). The Small Business Administration’s Office of Advocacy is holding public forums on the DOL’s planned changes to the FLSA independent contractor regulations.
The DOL announced its review earlier this month.
- Independent contractors are not guaranteed the federal minimum wage and overtime pay that covered employees receive under the FLSA. DOL published a final rule on this issue on January 7, 2021, which adopted an economic reality test that considers whether a worker operates their own business or is economically dependent on an employer for work.
- The DOL delayed that rule on March 4, 2021, and then withdrew it on May 6, 2021, but on March 14, 2022, a district court vacated DOL’s decision to delay and withdraw the rule, and the 2021 final rule remains in effect.
The Public Forum:
The DOL plans to engage in new rulemaking on the issue and seeks public feedback. The SBA’s Office of Advocacy seeks feedback on the impact of potential changes to these regulations on small businesses. For questions, contact Janis Reyes at the SBA, or call 202-798-5798
For more information on the forums and to RSVP, visit: