Independent Contractor Rules Change Again
Public comment on the new rules, which would make it easier to classify workers as contractors rather than employees, will be open until April 28.
Good morning!
Here are today’s highlights:
An NFIB survey finds that a growing number of business owners say the cost or availability of insurance is their most important problem.
This is not the first messy refund situation the Court of International Trade has had to negotiate.
The number of Americans buying houses and taking mortgages is fading fast.
It’s more common than you might think for business owners to sell their business—and then buy it back.
REGULATION
The independent contractor rules are changing again: “The Department of Labor has proposed a new rule clarifying what makes an independent contractor — and businesses should take note. The proposed rule applies an ‘economic reality’ test to determine whether a worker is in business for themselves or whether they are dependent on their employer for work. It ultimately makes it easier for businesses to classify workers as contractors rather than employees.”
“Under the current framework, employers are required to use a stricter, six-factor test to determine if a worker is an independent contractor or not. Officials from the Department of Labor stated in an announcement that the old rule, which was issued by President Joe Biden in 2024, ‘could be viewed as setting a higher bar to find independent contractor status than the law requires.’”
“The new proposal represents an updated version of a previous rule issued under President Donald Trump’s first term. It is open for public comment until April 28. The proposed rule ultimately focuses on who controls the work and who assumes the entrepreneurial risk, which Edwin Aiwazian, CEO at Lawyers for Justice, stressed lines up more closely with judicial precedent.”
“The proposed rule also adds three more factors to guide companies and contractors, including the permanence of the relationship, how integrated the produced product is to the company, and level of skill. Companies should review their existing agreements and also make sure they are staying within the guidelines of state-level laws, said Anthony Rainone, co-chair of labor and employment at law firm Brach Eichler.” READ MORE
