In its 184-page Notice of Proposed Rulemaking, the U.S. Department of Labor proposes a multi-factor economic realities test that weighs six factors in determining whether a worker is an employee or an independent contractor (owner-operator). This approach abandons the emphasis placed by the previous Administration on two “core” factors – the nature and degree of control over the work and the worker’s opportunity for profit or loss – which often favor independent contractors.

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