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Trump Rule on Gig-Worker Status to be Reconsidered by Biden DOL

March 8, 2021, 1:40 PM

The U.S. Labor Department is nearing completion of a regulatory update to a significant rule it finalized late in the Trump administration that would clarify whether workers are employees or independent contractors.

The agency is awaiting clearance from the White House Office of Information and Regulatory Affairs before it can release the new proposal, which could consider public input on whether to modify or repeal the business-friendly regulation DOL issued two weeks before former President Donald Trump left office.

The Trump rule, which had initially been slated to take effect Monday, would’ve adopted a new test to make it easier for companies to classify workers as independent contractors, rather than employees who are entitled to minimum wage and overtime.

A notice on the OIRA website stated DOL transmitted the new proposal—"Independent Contractor Status Under the Fair Labor Standards Act"—for review on March 5. Further details of the substance of the proposal weren’t provided, and DOL media representatives didn’t immediately respond to a request for comment.

The Biden administration had earlier stalled the effective date of the Trump rule by 60 days, citing the need to “allow the Department to review issues of law, policy, and fact.”

To contact the reporter on this story: Ben Penn in Washington at bpenn@bloomberglaw.com

To contact the editors responsible for this story: John Lauinger at jlauinger@bloomberglaw.com; Martha Mueller Neff at mmuellerneff@bloomberglaw.com

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