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Will the “Economic Reality” Test for Independent Contractors be Changed Under the New Administration?

Many Texas employers whose worker classification is difficult to determine have questions about the new administration’s U.S. Department of Labor (DOL) rules regarding independent contractors. More specifically, the test that employers should apply to determine whether a worker is an independent contractor or an employee may not be clear given that the Trump-era independent contractor rule has been withdrawn. That rule created an “economic reality” test that included two central or core factors that employers could use to determine a worker’s status. The DOL rescinded that rule, however, and the repeal took effect on May 6, 2021. If you are Read more