DOL
Final Rule
Employee or Independent Contractor Classification Under the Fair Labor Standards Act
Finance & Banking
This final rule restores the multifactor economic reality test for determining whether a worker is an employee or independent contractor under the Fair Labor Standards Act. The rule rescinds the previous administration's simplified two-factor test and returns to a totality-of-the-circumstances analysis, considering six factors including opportunity for profit or loss, investment, permanence, and the degree of employer control.