Transportation Law Update: USDOL Rescinds Independent Contractor and Joint Employer Rules
Under the Biden administration, the United States Department of Labor has rescinded the rules relating to independent contractors and joint employers. See 86 F.R. 14027 (3-12-21). We previously reported on the announcement regarding joint employers which took effect in March of 2020. At least with respect to the independent contractor rule, the transportation industry was anticipating some clarification on the criteria to meet the independent contractor test as the independent contractor model is popular in the industry. The independent contractor final rule had not yet taken effect. This rescission impacts businesses that have relationships with independent contractors or which could be found to be a joint employer.