On March 15, 2022, the U.S. District Court for the Eastern District of Texas vacated the Department of Labor (DOL) actions delaying and withdrawing the independent contractor regulation issued in January 2021, under the previous administration. The independent contractor regulation updated the definition of “employer” under the Fair Labor Standards Act (FLSA), adopting an economic realities test for classifying workers as employees or independent contractors. As a result of this ruling, the independent contractor rule is in effect.
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