Federal Updates

Written by Anonymous | Feb 17, 2021 8:24:00 PM

U.S. Department of Labor (DOL) Independent Contractor and Tip-Sharing Rules Postponed

The Department’s “Independent Contractor Status Under the Fair Labor Standards Act” rule, published at 86 FR 1168 on January 7, 2021, is currently scheduled to be effective on March 8, 2021. However, in accordance with the memorandum of January 20, 2021, from the Assistant to the President and Chief of Staff, titled “Regulatory Freeze Pending Review,” the Department has proposed to delay the rule’s effective date to May 7, 2021. https://www.dol.gov/agencies/whd/flsa/2021-independent-contractor

The Department’s rule, “Tip Regulations Under the Fair Labor Standards Act,” published at 85 FR 86756 on December 30, 2020, is currently scheduled to be effective on March 1, 2021. However, in accordance with the memorandum of January 20, 2021, from the Assistant to the President and Chief of Staff, titled “Regulatory Freeze Pending Review,” the Department has proposed to delay the rule’s effective date to April 30, 2021. https://www.dol.gov/agencies/whd/flsa/tips

The DOL also withdrew recent opinion letters regarding tipped workers and independent contractor status because they were based on rules that had not gone into effect. More changes may come as the DOL aligns with the Biden administration.

 

Form I-9 Flexibility

At this time, the Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE) have extended the flexibility in complying with requirements related to Form I-9 until March 31, 2021. FrankCrum will provide updates but employers can check out the DHS and ICE websites for information about when the extensions end and normal operations resume.