January Headlines
US Labor Department Proposes New Independent Contractor Rule
President Biden’s Department of Labor (DOL) is finalizing a new rule under the Fair Labor Standards Act to redefine independent contractor classification, aiming for completion in the second half of 2023. This follows extensive public feedback, including over 55,000 comments since October 2022. The proposal revisits the Economic Realities Test, introduced by the previous administration, to determine employee versus contractor status. The DOL seeks a more holistic approach, in contrast to the 2021 rule’s focus on key factors. Groups like the Direct Selling Association and the U.S. Chamber of Commerce, as well as Republican legislators, have raised concerns, citing potential confusion and impact on small businesses and independent workers.
FTC Issues Revised Compliance Guidance for Health Products
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