On June 7, 2017, the U.S. Secretary of Labor Alexander Acosta announced the withdrawal of the U.S. Department of Labor’s (“DOL”) guidance on independent contractors and joint employment issued during the Obama administration, without issuing replacement guidance. Although the DOL offered no explanation for its decision, the move signaled that, under the Trump administration, the DOL may take a more employer-friendly approach when investigating these issues. At the moment this is simply an expectation and will not serve as a defense before the DOL or in litigation. So how do employers protect themselves? Unfortunately, there is no foolproof answer. The best defense is knowledge. Employers should understand the DOL’s position in the withdrawn guidance, the DOL’s position pre-guidance (likely the DOL’s current position) and how the absence of the guidance may impact judicial decisions.
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