Effective March 11, new ‘independent contractor’ rule favors classifying workers as employees

The Department of Labor has issued a new final rule that will make it harder for employers to classify workers as independent contractors, not employees. The rule, Employee or Independent Contractor Classification Under the Fair Labor Standards Act, will take effect March 11. That’s when employers must begin applying what the DOL calls an “economic realities test” to determine if someone is truly a contractor or if he or she should be classified as an employee.