May 11, 2021

Andrew Murphy Offers Employer Advice Regarding DOL’s Independent Contractor Rule Withdrawal

In the Compensation Management News section of, labor and employment partner Andrew Murphy discussed the Department of Labor’s (DOL) withdrawal of the independent contractor rule and shared advice for employers in the article titled, “DOL’s Rule Withdrawal Makes Justifying Independent Contractor Status Tougher.”

While new rulemaking is a possibility, Murphy said it would take months to develop and work through the administrative process, and it would also likely be challenged in court. For example, he noted that a rule adopting the ABC test “would upend decades of past practice, including U.S. Supreme Court precedent.”

Additionally, Murphy advised employers to “continue on a moderate path,” meaning they should use the time before any new rule can be finalized to ensure their contractor relationships are appropriate in terms of what is theoretically possible under a contract and how the worker is actually performing services.
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