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 The final rule issued by the Biden Administration in early May rescinded this regulation.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.
sand timer
President Trump has nominated Boeing Chief Labor Counsel Scott Mayer, and long-time NLRB official James Murphy, for positions on the Nation…
thermometer
On July 24, 2025, the U.S. Department of Labor (DOL) announced several programs designed to help employers and others voluntarily assess an…
open sign
EEO-1 reports, also known as Standard Form 100, are required annually from employers of 100 or more employees and of federal contractor wor…
shotgun shell
The Wall Street Journal recently did an interesting article on the latest training for best practices in active-shooter situations.  It beg…
religious symbol
On July 18, the U.S. Office of Personnel Management outlined a new policy in a memorandum titled “Protecting Religious Expression in the Fe…
promo graphic, New Rules for Religious Discrimination and Accommodation In the Workplace
The First Amendment of the U.S. Constitution states that “Congress shall make no law respecting an establishment of religion, or prohibitin…