The United States Department of Labor (DOL) announced on Wednesday that it is withdrawing the independent contractor rule that passed under the Trump administration.

The rule was slated to take effect on March 8. However, the Biden administration asked federal agencies to freeze pending regulations to give new leaders time to review them. The final rule, which was considered a more employer-friendly interpretation of employee status under the Fair Labor Standards Act than what was applied during the Obama administration, adopted an “economic reality” test for determining which workers qualify as independent contractors or employees. The rule primarily considered two “core factors” and three “guidepost factors” for determining if the worker is economically dependent. READ MORE