United States Department of Labor Proposes New Independent Contractor Rule

United States Department of Labor Proposes New Independent Contractor Rule

On October 11, 2022, the U.S. Department of Labor released a proposed rule interpreting how a worker is classified under the Fair Labor Standards Act (FLSA). The DOL has proposed the rule to ensure covered employers are providing workers, including "gig workers," with minimum wage and overtime pay as required under the FLSA, to ensure consistency with existing judicial precedent and the Department’s longstanding guidance. The proposed rule under the FLSA also does not impact real estate professionals’ explicit protection in the Internal Revenue Code, 26 U.S.C. 3508, which provides the framework to classify them as statutory non-employees for federal tax purposes. Additional information on this proposed rule is available here: https://www.nar.realtor/washington-report/dol-proposes-new-independent-contractor-rule

Please note that this rule is proposed and not effective as of the publication date of this post.