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On 6 May 2022, The U.S. Department of Labor's final rule on independent contractor status was withdrawn by the Wage and Hour Division, a day before it was meant to be implemented. It was announced a day before on 5 May 2022. The Department of Labor (DOL) had announced a new rule distinguishing between "employees" and "independent contractors". Previously, there had been regulatory confusion over this distinction. Determining who is considered an employee or an independent contractor was based on a variety of unofficial factors. This rule, according to the DOL, is a mere adoption of what the unofficial definition has been in courts and departments in the first place. Independent contractors are "workers who, as a metter of economic reality, are in business for themselves", whereas employees are dependent on their potential emplyoyer. Determining who is dependent and who is not can be set along five variables, with the most important being the extent of the person's control over their work and the person's probability for obtaining profit or loss.
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