The US Department of Labor (DOL) has proposed a new rule which will rescind the Biden-era independent contractor rule.
The new rule returns to the “economic reality” test and focuses on two factors, the nature and degree of control over the work and the worker’s opportunity for profit and loss based on their own initiative or investment.
If these two factors point in the direction of independence, other components (skill, permanence, part of an integrated production unit) do not need to be considered.