Author: Dorrie Larison
On January 7, 2021, the U.S. Department of Labor (DOL) published its final rule (“Final Rule”) setting new standards for determining when a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA). The Final Rule takes effect sixty days from its publication in the Federal Register and is, therefore, scheduled to take effect on March 8, 2021. The DOL notes that the Final Rule reaffirms the “economic reality” test; however, the new test changes the analysis to be used when applying the test.