Biden’s Independent Contractor Rule Quietly Takes Effect, Replaces Trump-Era Standards

Complaints argue that the new rule makes it more complicated for business owners to evaluate whether a worker is an independent contractor.
Biden’s Independent Contractor Rule Quietly Takes Effect, Replaces Trump-Era Standards
The U.S. Department of Labor Building in Washington, D.C., on March 26, 2020. Alex Edelman/AFP via Getty Images
Bill Pan
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The U.S. Department of Labor’s new independent contractor rule went into effect Monday, despite court challenges brought by businesses finding the rule makes it more difficult for them to determine whether someone is an employee or an independent contractor.

The new rule marks an almost three-year endeavor by the Biden administration to overturn a Trump-era rule, which established a straightforward “economic reality” test for businesses to distinguish an independent contractor from an employee.