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DOL Delays New Independent Contractor Rule

February 18, 2021

Takes First Step Towards Revision

In accordance with the Biden administration’s recent regulatory freeze memorandum, the U.S. Department of Labor (DOL) issued a proposal to delay of the effective date to a final rule clarifying the standard for employee versus independent contractor status under the Fair Labor Standards Act (FLSA). The final rule originally was to be effective 60 days after publication in the Federal Register, on March 8, 2021, however, the most recent proposal delays that date by an additional 60 days to allow the agency “the opportunity to review and consider the questions of law, policy, and fact raised by the rule[s].” The new effective date in the proposal is May 7. AGC expects the DOL to withdraw the final rule prior to the new effective date and to begin the process of drafting a proposed new rule on the same issue for public comment.

For more information, contact Claiborne Guy at claiborne.guy@agc.org or 703-837-5382.

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