NAWBO is asking members to submit their feedback on proposed regulations affecting independent contractors. The change would rescind a prior Trump administration rule, which adopted a test focused on two core factors: control and profit. The Department of Labor (DOL) proposes an economic realities test that requires a totality-of-the-circumstances analysis of multiple factors. Under this proposed rule, the factors are:

  • The opportunity for profit or loss depending on managerial skill. 
  • The investments by the worker and the employer. 
  • The degree of permanence of the work relationship. 
  • The nature and degree of employer control. 
  • The extent to which the work performed is an integral part of the employer’s business. 
  • worker’s use of skill and initiative.

In its Initial Regulatory Flexibility Analysis, DOL estimates that millions of small businesses could hire and/or be independent contractors. DOL estimates compliance costs of under $25, which includes an estimate that it will take small businesses 15 to 30 minutes to read and understand the rule. If you would like to provide feedback, email Elle Patout, Director of Advocacy and Public Relations for NAWBO, at [email protected] with:

  • Your name of business and location.
  • If you are an independent contractor or use an independent contractor(s)(how many?)
  • How do you function as an independent contractor or use an independent contractor?
  • Do you believe your independent contractor could pass this test, or do you think the factors could be tweaked to serve your business better?
  • If this were put into place, what would happen to your business?
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