United States of America: Closed consultation on Employee or Independent Contractor Classification Under the Fair Labor Standards Act

On 13 December 2022, the public consultation closes on the draft Rule on Employee or Independent Contractor Classification Under the Fair Labor Standards Act. The Department of Labor (DOL) on 26 October 2022, extended the deadline for submitting comments from 28 November 2022 to 13 December 2022. In its draft rule, the DOL proposed a new framework for assessing the worker's status and classifying a worker as an independent contractor or employee. In particular, the DOL proposed applying the "economic reality test", including an analysis of the "control factor", which considers how prices are set and the worker's ability to provide services for others. Furthermore, the Rule aims to consider if the "work is integral to the employer's business", which the DOL understands as the "integral factor".