closeup shot of sign in front of DOL building and part of the building The proposed role is in part a response to efforts in some Democratic-run states to widen the legal definition of an employee. (Photo: Michael Scarcella/ALM Media)

Businesses would find it simpler to decide whether to classify workers as independent contractors under proposed legislation released by the U.S. Department of Labor on Tuesday. The interpretation of employee status would be more employer-friendly than how it was applied during the Obama administration, according to Bloomberg Law.

The proposal will be subject to a 30-day comment period after it's published in the "Federal Register" in coming days. The proposed rule adopts an "economic reality" test for determining which workers qualify as independent contractors. It explains that contractors must be in business for themselves, rather than being economically dependent on the possible employer for work.

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