DSA opposes ‘harmful’ final rule, warns of uncertainty ahead for direct sellers
By: SSN Staff
On Jan. 10, 2024, the U.S. Department of Labor (DOL) published a long-awaited Final Rule for classifying independent contractors under the Fair Labor Standards Act (FLSA). Set to go into effect on March 11, 2024, the Final Rule—Employee or Independent Contractor Classification Under the Fair Labor Standards Act—will rescind the 2021 Independent Contractor Rule and, according to the DOL, will bring the DOL’s guidance more in line with current case law, as well as long-standing judicial precedent.
Emphasizing that the Final Rule was enacted to safeguard employees who may be misclassified as independent contractors, the DOL emphasizes that it does not wish to disrupt the industries utilizing independent contractors.
Core Factors vs. Totality of Circumstances Test
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