The U.S. Department of Labor (USDOL) issued a “new” final rule on Jan. 9, 2024 regarding when employers are permitted to classify workers as employees or independent contractors under the Fair Labor Standards Act (FLSA). The new rule took effect on March 11, 2024 and was codified at 29 C.F.R. Part 795.

Designed to align the USDOL’s rules with existing jurisprudence, which looks at the economic realities, the new rule sets out a six-factor test to determine whether a worker should be classified as an independent contractor or an employee. This “new rule” rolls back the relaxed standard adopted during the Trump administration, which focused on only two factors.