DOL Independent Contractor Rule Takes Effect – for Now

The much anticipated-and-maligned new independent rule from DOL has become the law of the land for the time being, but there are still court cases outstanding to challenge it. Groups of employers in Texas and Louisiana have filed emergency injunctions against it, and the DOL has filed a brief in opposition. The Society for Human Resource Management (SHRM) has said it supports a Congressional review of the law, with hopes to return to the 2021 standard, which is more flexible and easier to understand – and comply with. 

In response, business groups sued to prevent the new rule from being enforced because it is less favorable to businesses – and to independent contractors, in the view of many. The 5th Circuit Court (TX, LA, MS) put a hold on implementation while the DOL revised its rules. A lower court is reviewing or has reviewed the new regulations. The implementation date was supposed to have been March 11. That has now passed, but the challenges to the rule are yet to be resolved.