Final DOL Independent Contractor Rule Lands at OMB

The rule, if finalized, would cause "independent financial advisors and firms to divert time and resources to defending their independent contractor classification," FSI said at the time.

David Bellaire, FSI's general counsel, told ThinkAdvisor Wednesday that FSI is "ready to review and analyze DOL's independent contractor rule once it is published. While we hope it preserves the clarity provided by the 2021 rule and maintains independent advisors' classification as independent contractors, we are prepared to take the necessary measures to defend advisors' choice to operate as independent contractors if the rule does not."

As the OMB notice states, on Jan. 7, 2021, the DOL published a final rule on independent contractor status under the FLSA.

Labor subsequently published final rules to delay and withdraw the 2021 rule on March 4, 2021, and May 6, 2021, respectively.

On March 14, 2022, a district court in the Eastern District of Texas vacated the DOL's delay and withdrawal rules, concluding that the 2021 independent contractor rule became effective as of March 8, 2021.

DOL has appealed the district court's decision, and published an notice of proposed rulemaking on Oct. 13, 2022.