In the waning days of the first Trump administration, the U.S. Department of Labor (DOL) finalized a regulation establishing the test to be used by DOL to determine whether a worker is an independent contractor or employee under the Fair Labor Standards Act, which governs overtime and minimum wage. That regulation set forth a multi-factor test that emphasized two core factors that made the determination more predictable. The Biden administration replaced the DOL regulation with an equally weighted, multi-factor test but included commentary that leans toward a finding of employee status.
President Trump’s Secretary of Labor nominee will take over at a time where the newer Biden administration rule is embroiled in legal challenges. The President may have multiple paths toward reinstituting a simpler, more predictable test favored by businesses.
NorthAmerican Transportation Association will keep you abreast of any new changes,
Content Disclaimer: Due to the constantly changing nature of government regulations, it is impossible to guarantee the total and absolute accuracy of the material contained herein or presented. NorthAmerican Transportation Association (NTA) cannot and does not assume any responsibility for omissions, errors, misprinting or ambiguity contained. NTA shall not be held liable in any degree for any loss, damage or injury caused by any such omission, error, misprinting or ambiguity present. It is made available with the understanding that NTA is not engaged in rendering legal, accounting or other professional service. If legal advice or other expert service is required, the services of such a professional should be sought.