New Proposed Rule on Independent Contractors Sent to White House

A new U.S. Department of Labor proposed rule on which workers are independent contractors is expected soon, as the White House’s Office of Information and Regulatory Affairs (OIRA) received it for review on July 5.

Review by OIRA in the White House Office of Management and Budget is one of the last steps before a proposal becomes public. The rulemaking is the current administration’s second attempt to revise how it interprets whether workers should be classified as independent contractors or employees who are protected by the Fair Labor Standards Act (FLSA).

Under the FLSA, employees are entitled to minimum wage, overtime pay and other benefits. Independent contractors are not entitled to such benefits, but they generally have more flexibility to set their own schedules and work for multiple companies. A rule still in effect made it easier for employers to classify workers as independent contractors rather than employees.