Employee or Contractor? Proposed DOL Rule Could Impact Self-Employment Status

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September 29, 2020

Employee or Contractor? Proposed DOL Rule Could Impact Self-Employment Status

In an effort to further clarify whether a worker is an employee or an independent contractor, the U.S. Department of Labor recently announced a proposed rule to adopt a five-factor “economic reality” test. This test considers whether a worker is in business for themselves, acting as an independent contractor, or is economically dependent on an employer for work and, therefore, is an employee.