"New Department of Labor Rule Redefines Classification of Gig Workers"

The US Department of Labor has announced a final rule to clarify the classification of workers as employees or independent contractors under the Fair Labor Standards Act, aiming to combat employee misclassification and protect workers' rights. The rule aligns with longstanding judicial precedent and restores a multifactor analysis to determine a worker's status, addressing factors such as opportunity for profit or loss, degree of control by the employer, and the worker's skill and initiative. The new rule will take effect on March 11, 2024, and rescinds the 2021 Independent Contractor Rule that the department believes is not consistent with the law and longstanding judicial precedent.