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rubber stamp with word Regulations While the rule is not a federal mandate, one Department of Labor official told the Journal that it is intended to be a model for states. (Photo: Shutterstock)

The Department of Labor on Jan. 6 delivered its eagerly anticipated final rule clarifying the standard for employee versus independent contractor status under the Fair Labor Standards Act (FLSA).

“Streamlining and clarifying the test to identify independent contractors will reduce worker misclassification, reduce litigation, increase efficiency, and increase job satisfaction and flexibility,” Wage and Hour Division Administrator Cheryl Stanton said in a statement. “The rule … continues our work to simplify the compliance landscape for businesses and to improve conditions for workers. The real-life examples included in the rule provide even greater clarity for the workforce.”

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