Days after publishing Independent Contractor Rule Gets An Update . . . For Now, the Biden administration was inaugurated and the new President used his first days of office to put a freeze on proposed regulations with pending effective dates. This is not unusual once a new administration takes over, but in this case, the Independent Contractor regulations set to take effect March 8, 2021 were also paused. Citing a need for the new appointees to review any new or pending rules, the freeze took effect on January 22, 2021.
The welcomed new rule was supposed to provide greater clarity as to how to classify workers. With the thirty day period for reassessment coming to an end soon, the Biden administration should provide some guidance as to how it will proceed in the coming weeks. Employers should continue to hold on making any changes while these rules are reviewed.
In addition to the independent contractor rule, other employment related regulations were either paused or are expected to change under the Biden administration, including the DOL Tip-Sharing rule which was also paused; expected increases to federal minimum wage; more union-friendly policies; and stronger protections for employees.
As these new regulations and rules roll out, employers should continue to monitor them, and update policies to reflect the changes in law.
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