Accessibility Tools

Skip to main content

Favorable Trump Independent Contractor Rule Canceled by Biden

Written on .

The Trump Administration issued a federal regulation making it easier for businesses to classify workers as independent contractors. While the Trump regulation listed five factors for consideration, the two given the far greatest weight were the nature and degree of the worker's control over the work, and the worker's opportunity for profit or loss based on personal initiative or investment. The final rule issued by the Biden Administration in early May rescinded this regulation. 

While the Biden Administration did not replace the Trump regulation, Acting Wage and Hour Division Administrator Jessica Looman told reporters in an agency-arranged conference call how the Department of Labor (DOL) will handle enforcement efforts on the issue of classifying workers as employees or independent contractors. In general, she indicated that the Biden Administration will rely on a long-standing multi-factor test. She cited DOL Guidance from 2008 that outlined a seven-factor "economic realities" test. Among other things, there will be an examination of whether the work performed is "an integral part" of the business, and the worker's "degree of independent business organization and operation." Looman did not foreclose the possibility that DOL could release new guidance or a regulation on employee status in the future.

This is part of our June 2021 Newsletter.

Click here to download the newsletter PDF

Get Email Updates

Receive newsletters and alerts directly in your email inbox. Sign up below.
promo graphic, Responding to a Plaintiff Attorney’s Demand Letter
It is quite common for plaintiff’s attorneys to write a letter to a company, popularly called a “demand letter,” claiming the employer has…
scales of justic and gavel
On June 9, 2026, the U.S. House of Representatives passed the Faster Labor Contracts Act (FLCA), a concept long supported by organized labo…
gavel, court room table
In a Department of Justice (DOJ) Memo issued on June 9, 2026, the DOJ has re-evaluated the Equal Employment Opportunity Commission’s (EEOC)…
woman symbol lineup
The U.S. Supreme Court has upheld the laws of two states reserving female teams for biological females, finding such laws do not violate ei…
stack of reports
A vote on July 21, 2026, was 2-1 by the EEOC Commissions to end workforce demographic data collections.  A notice of rulemaking must appear…
pile of cash
Individuals and corporations can begin making contributions to tax-advantaged investment accounts for children starting July 4, 2026, and s…