The U.S. Department of Labor just proposed rescinding the 2024 federal independent contractor rule and moving back toward a framework that puts heavier emphasis on two factors:

• Control
• Opportunity for profit or loss

At the federal level, the test would again center on whether the worker is truly in business for themselves — or economically dependent on the company.

That’s the headline. Here’s the part California employers need to hear: A new DOL rule won’t make your contractor model safer in California.

You can read more at Shaw Law Group.