DOL Debuts Rule Easing Business Use of Independent Contractors (1)

Businesses will gain a simpler framework for classifying workers as independent contractors under a high-stakes regulatory proposal the Labor Department released, representing the Trump administration’s response to blue-state efforts to expand the scope of employee status.

The proposed regulation, unveiled Tuesday, provides a model for when businesses may legally classify workers as independent contractors rather than employees, who are covered by federal minimum wage and overtime law. The DOL is proposing a more employer-friendly interpretation of employee status under the Fair Labor Standards Act than it applied during the Obama administration.

The issue of worker classification has taken on ...