DOL Redefining “Independent Contractor”

AGC recently submitted comments on the U.S. Department of Labor (DOL) Wage and Hour Division’s (WHD) proposed rule to establish a new test for determining who is an independent contractor versus an employee under the Federal Labor Standards Act (FLSA).

When the proposal is finalized, it would rescind a Trump administration final rule clarifying the standard for employee versus independent contractor status under the FLSA. AGC opposes the creation of this new standard for independent contractor classification and urged the DOL to withdraw this proposed rule.

AGC has long called for federal clarification of the independent contractor status and preservation of legitimate independent contractor relationships, such as those that have historically existed in the construction industry. AGC supported the Trump administration’s rule that adopted a consistent, clear and common-sense standard for determining independent contractor status under the FLSA and filed comments opposing the DOL move to withdraw the rule. AGC will keep members apprised of any new guidance regarding the independent contractor status.

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