US Department of Labor Defines Contractors

The U.S. Department of Labor (DOL) recently published a final rule on its interpretation of the Fair Labor Standards Act’s (FLSA) classification that determines whether a worker is an employee or an independent contractor.

According to the DOL, there are no significant changes from the independent contractor rule proposed in September 2020. That rule adopted an “economic reality test” that studies two core factors: “the nature and degree of workers’ control over their work and the opportunity for profit or loss based on initiative, investment or both.”

The test will assess three additional factors as well:
– The amount of skill required for the work.
– The degree of permanence of the working relationship between the worker and the potential employer.
– Whether the work is part of an integrated unit of production.

For more information about the FLSA’s ruling on independent contractors, what it means for your business, and its chances of surviving President Biden’s administration, contact us today.


Jennifer is a Human Resources Executive with over 25 years of human resources experience in multiple industries including consulting services, manufacturing/distribution, banking, and retail. Her passion is providing HR solutions for her firm’s clients by helping them build their HR infrastructure through strategic planning, employment law compliance and best practices on human capital. She especially enjoys working with entrepreneurs and family- owned businesses. Prior to joining HR Affiliates, Jennifer was the President/Owner of CenterPointHR. Jennifer also has experience as a Senior HR Consultant with an HR consulting firm, as well as spending many years with JPMorgan Chase in a variety of corporate human resources roles.