Dol orders staff not to enforce the independent rule of Biden-era contractor

Brief of diving:

• Field staff for the Salary and Time Division of the United States Department of Labor Will not apply The rule of the independent contractor of the 2024 agency in its application of the Fair Labor Rules Act, announced a bulletin on Thursday.
• Instead, the department led staff to apply a 2008 facts sheet as well as a 2019 opinion letter to any matter where no payment has been made for the civilian remuneration or penalties to people or mourning.
• The agency said that it is still planning to terminate the rule of Biden administration, which faces ongoing litigation. “Until more actions are taken, the rule of 2024 is still in effect for private litigation and nothing in this fabulous changes the rights of employees or the responsibilities of entrepreneurs under the FLSA,” he said.

Divide vision:

As with other mourning regulations adopted during the Biden administration, the Trump administration seems to have to leave the standard independent of the contractor. A change on the subject would extend a regulatory sequence that goes back to various electoral cycles.

The rule Came into force in March 2024 Despite the legal challenges presented by various business groups and federal judges fired several such challenges In the months they followed. While this litigation continues, at least one case that challenges the rule – in appeal to the fifth court of appeal of the United States circuit – has been placed on hold.

The Biden administration sought to expand salary and federal hours to workers who believed that they were mistakenly classified as independent contractors. Mourning adopted to Framework “All the Circulants” To evaluate if a worker is properly classified as an independent contractor. Set six non -existent factors for the agency to take into account when evaluating the relationship between a potential employee and employer:

• Opportunity of the worker to obtain profits or losses.
• Investments made by the worker and the employer.
• Degree of permanence of the employment relationship.
• Nature and degree of control over labor performance.
• The extension in which the work done is an integral part of the businessman’s business.
• Use of worker skill and initiative.

The mourning rule replaced a previous rule issued by the first Trump administration. By 2020 the mourning of the Trump era published a rule Establish a test of “economic reality” To evaluate the relationships of workers-employers, which in turn focused on two basic factors: the nature and degree of control of a worker and a profit or benefit opportunity, as well as three “additional guides”. The mourning of the Biden era eventually rescdes this rule.

The two documents cited by the Trump administration hold an economic reality analysis for the relations of independent contractors with a list of factors approximately similar to those included in the 2024 rule. One of the documents, A 2019 opinion letter In which Dolit clarified that service providers of a virtual market company were independent contractors, it has been similar to the administration of Biden.