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Dept of Labor change on Independent Contractors

Major Dept of Labor rule change on the criteria that differentiates between employee and independent contractor.

This new DOL independent contractor rule for 2024 adopts a six-factor test to determine whether a worker qualifies as an independent contractor. This test is similar to guidance issued and case law decided prior to 2021. The six factors are:

  1. opportunity for profit or loss depending on managerial skill;

  2. investments by the worker and the potential employer;

  3. degree of permanence of the work relationship;

  4. nature and degree of control;

  5. extent to which the work performed is an integral part of the potential employer’s business; and

  6. skill and initiative.

Video that explains it:


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