News

DOL Pulls Back FLSA Independent Contractor and Joint Employer Rules

March 11, 2021

In accordance with the Biden administration’s recent regulatory freeze memorandum, the U.S. Department of Labor (DOL) Wage and Hour Division (WHD) issued proposals to roll back two of the Trump administration’s rulemakings. One DOL proposal is to withdraw a final rule clarifying the standard for employee versus independent contractor status under the Fair Labor Standards Act (FLSA). The previous final rule originally was to be effective on March 8, 2021, however, a recent proposal delayed that date to allow the agency “the opportunity to review and consider the questions of law, policy, and fact raised by the rule[s].”

The second DOL proposal is to rescind a Trump administration rule that updated the regulations interpreting joint employer status under the Fair Labor Standards Act (FLSA). Although the rule went into effect on March 16, 2020, the U.S. District Court for the Southern District of New York vacated most of the Rule in a September 8, 2020 decision. According to the most recent proposal, “rescission of the Joint Employer Rule and removal of Part 791 would allow WHD an additional opportunity to consider legal and policy issues relating to FLSA joint employment.”

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

Industry Priorities: 
Go to top