Department of Labor issues Final Rule on independent contractor status



In response to a question from an America’s Newspapers member, Camille Olson of Seyfarth Shaw said the Final Rule will not affect newspaper carriers, as there is a special exemption in this law for anyone who delivers newspapers or shopping news to the ultimate consumer.  So this Rule is not relevant to those carriers’ relationship.

TheFinal Rulepublished Thursday, Jan. 7, in the Federal Register by the U.S. Department of Labor with regard to “Employee or Independent Contractor Classification” uses an “economic reality” test to determine a worker’s status. It is currrently scheduled to become effective March 8, 2021.

The Final Rule considers whether a worker is in business for himself or herself (independent contractor) or is instead economically dependent on an employer for work (employee).

It identifies two “core factors”:

  • The nature and degree of the worker’s control over the work.
  • The worker’s opportunity for profit…

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