Skip to content

Menu

ChannelsPublishersSubscribe
LexBlog, Inc. logo
LexBlog, Inc. logo
ProductsSub-MenuBlogsPortalsTwentySyndicationMicrositesResource Center
Join
Search
Close
Join the Movement. Blog 4 Good

DOL Takes First Step to Revisit Independent Contractor and Tip Rules

By Allan Bloom on February 4, 2021
EmailTweetLikeLinkedIn
Law_Workplace_Department-of-Labor

In accordance with the Biden administration’s January 20 regulatory freeze memorandum, the U.S Department of Labor issued proposals to delay the effective dates of the Final Rules on independent contractor classification and tip regulations by 60 days, to allow the agency “the opportunity to review and consider the questions of law, policy, and fact raised by the rule[s].”  In notices to be published in the Federal Register on February 5, the DOL proposed to delay the effective date of the independent contractor rule from March 8 to May 7 and the effective date of the tip regulations rule from March 1 to April 30.

The independent contractor rule would have revised the agency’s test for determining worker status to focus on two “core factors” (control and opportunity for profit and loss), and the tip regulations rule would have—among other things—eliminated the “80/20” test for determining whether and for what hours an employer can take a tip credit against the minimum wage.

Public comments on the proposals to delay the effective dates of the rules are due on February 17 (tip regulations rule) and February 24 (independent contractor rule).

We fully expect the DOL to implement the 60-day effective date delays with respect to both rules following the close of the public comment periods, to withdraw both rules prior to their new effective dates, and to begin the process of drafting proposed new rules on the same issues for public comment.

These latest actions follow a busy first month for the DOL under President Biden, in which the agency rescinded the Pro Good Guidance Rule, withdrew several Trump-era wage and hour opinion letters, and discontinued the PAID program under which employers could self-report violations and avoid liquidated damages.  Watch for the DOL to take additional steps in the coming months to dismantle some of the prior administration’s actions and to align the agency’s priorities with those advanced by the White House.

Proskauer’s Wage and Hour Group is comprised of seasoned litigators who regularly advise the world’s leading companies to help them avoid, minimize, and manage exposure to wage and hour-related risk.  Subscribe to our wage and hour blog to stay current on the latest developments, and check out the latest Biden administration developments impacting employers on Proskauer’s Law and the Workplace blog.

Photo of Allan Bloom Allan Bloom

Allan S. Bloom is a nationally recognized trial lawyer and advisor who represents management in a broad range of employment and labor law matters. As a litigator, Allan has successfully defended a number of the world’s leading companies against claims for unpaid wages…

Allan S. Bloom is a nationally recognized trial lawyer and advisor who represents management in a broad range of employment and labor law matters. As a litigator, Allan has successfully defended a number of the world’s leading companies against claims for unpaid wages, employment discrimination, breach of contract and wrongful discharge, both at the trial and appellate court levels as well as in arbitration. He has secured complete defense verdicts for clients in front of juries, as well as injunctions to protect clients’ confidential information and assets.

As the leader of Proskauer’s Wage and Hour Practice Group, Allan has been a strategic partner to a number of Fortune 500 companies to help them avoid, minimize and manage exposure to wage and hour-related risk. Allan’s views on wage and hour issues have been featured in The New York Times, Reuters, Bloomberg and Fortune, among other leading publications. His class-action defense work for clients has saved hundreds of millions of dollars in potential damages.

Allan is regularly called on to advise boards of directors and senior leadership on highly sensitive matters such as executive transitions, internal investigations and strategic workforce planning. He also has particular expertise in the financial services industry, where he has litigated and arbitrated cases, including at FINRA and its predecessors, for more than 20 years.

Read more about Allan BloomEmail
Show more Show less
  • Posted in:
    Employment & Labor
  • Blog:
    Law and the Workplace
  • Organization:
    Proskauer Rose LLP
  • Article: View Original Source

Stay Connected

Facebook LinkedIn Twitter RSS
Real Lawyers

Company

  • About LexBlog
  • Careers
  • Press
  • Contact LexBlog
  • Privacy Policy
  • Editorial Policy
  • Disclaimer
  • Terms of Service
  • RSS Terms of Service

Products

  • Products
  • Blogs
  • Portals
  • Twenty
  • Syndication
  • Microsites

Support

  • 1-800-913-0988
  • Submit a Request
  • Support Center
  • System Status
  • Resource Center

New to the Network

  • New York Surrogate's Court Monitor
  • NC Legal Landscapes
  • McGeorge Legal Clinics
  • International Trade Law Compass
  • Ponzi Perspectives
Copyright © 2021, LexBlog, Inc. All Rights Reserved.
Powered By LexBlog