The Wage and Hour Division of the Department of Labor is proposing to delay the effective date of the "Independent Contractor Rule" from March 8, 2021, to May 7, 2021. This proposal follows a Presidential directive for a regulatory freeze to allow for further review of new rules. The rule aims to establish a new standard for classifying workers as employees or independent contractors under the Fair Labor Standards Act (FLSA). Public comments on this delay are encouraged and must be submitted by February 24, 2021.
Simple Explanation
The Labor Department is thinking about delaying a decision on a rule that tells whether people working are like employees or freelancers (independent contractors). This delay is to make sure the rules are right, and they want to hear what people think before making a final choice.