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May 10, 2021

Biden Administration Rescinds Independent Contractor Rule

As Reuters reported last week, the Biden administration has withdrawn a Trump administration rule that would have let companies more easily classify some workers as independent contractors.

The Biden administration’s final regulation, available here, contains no replacement test or interpretation of when workers function as independent contractors or when they must be classified as employees. For questions of worker classification, the Biden administration will now rely on a narrower “economic reality” test that considers whether a worker is in business for themselves (independent contractor) or is economically dependent on a putative employer for work (employee).

Read more from Bloomberg Law here.