• Jackson Shields Yeiser


Updated: Mar 25

By Paula Jackson

March 12, 2021

The DOL has indicated that it is delaying implementing its new Independent Contractor Rule from March 8, 2021, to May 7, 2021.[1]

On January 7, 2021, Jackson Shields Yeiser Holt Owen & Bryant attorney and partner James (“Jim”) L. Holt, Jr. posted an article on this website about this final rule, which clarified whether a worker was an independent contractor or employee under the Fair Labor Standards Act (“FLSA”). Mr. Holt indicated that “the new regulation sets forth an economic reality test intended to make it easier to establish an independent contractor relationship.”[2] Independent contractors are “in business for themselves” instead of being employees; therefore, the FLSA’s minimum wage and overtime requirements do not apply to them.[3]

When that article was posted, the rule had just been published, and its effective date was supposed to be March 8, 2021. However, the DOL recently announced the rule is being delayed until May 7, 2021. The DOL indicated that its decision to delay the rule was due to the January 20, 2021, presidential memorandum titled “Regulatory Freeze Pending Review.”[4]

However, yesterday, the DOL posted a proposed rulemaking notice proposing to withdraw its new Independent Contractor Rule.[5] Employers interested in commenting on this rule’s withdrawal may submit comments in the public record at www.regulations.gov by 11:59 pm ET on April 12, 2021.

[1]See the Department of Labor website at https://www.dol.gov/agencies/whd/flsa/2021-independent-contractor for more details.

[2] See “DOL Finalizes New Regulations on Independent Contractors,” James L. Holt, Jr., January 7, 2021, at https://www.jsylawfirm.com/post/dol-finalizes-new-regulations-on-independent-contractors. [3]See id. [4]See id. [5]See https://www.federalregister.gov/documents/2021/03/12/2021-05256/independent-contractor-status-under-the-fair-labor-standards-act-withdrawal.

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