--- title: 2024 Independent Contractor Classification Compliance Update description: On January 10, 2024, the DOL published a final rule on the analysis classifying employees or independent contractors. image: https://blog.proliant.com/hubfs/03%20-%20Blog%20Images/01%20-%20Proliant%20Blog/01%20-%20Feature%20Images/2024%20Independent%20Contractor%20Classification%20Compliance%20Update.jpg --- [![Proliant - Print Logo - No Strokes](https://blog.proliant.com/hubfs/01%20-%20Website/Logos/Proliant%20-%20Print%20Logo%20-%20No%20Strokes.svg "Proliant - Print Logo - No Strokes")](https://www.proliant.com) [Request Meeting](https://www.proliant.com/request-meeting) ** ** **Payroll** **Talent** **Workforce Management** **Benefits** **Platform** **Integrations** **ProLiant Mobile** Your employees can stay connected. **Anytime, anywhere**. ![proliant-mobile-mockup-mega-menu](https://blog.proliant.com/hubfs/01%20-%20Website/4%20-%20Main%20Pages/Home/proliant-mobile-mockup-mega-menu.png "proliant-mobile-mockup-mega-menu") [![Proliant - Print Logo - No Strokes](https://blog.proliant.com/hubfs/01%20-%20Website/Logos/Proliant%20-%20Print%20Logo%20-%20No%20Strokes.svg "Proliant - Print Logo - No Strokes")](https://www.proliant.com) [Request Meeting](https://www.proliant.com/request-meeting) ** ** **Payroll** **Talent** **Workforce Management** **Benefits** **Platform** **Integrations** **ProLiant Mobile** Your employees can stay connected. **Anytime, anywhere**. ![proliant-mobile-mockup-mega-menu](https://blog.proliant.com/hubfs/01%20-%20Website/4%20-%20Main%20Pages/Home/proliant-mobile-mockup-mega-menu.png "proliant-mobile-mockup-mega-menu") Search **Menu** ** ** [Request Meeting](https://www.proliant.com/request-meeting) ![](https://blog.proliant.com/hubfs/03%20-%20Blog%20Images/01%20-%20Proliant%20Blog/01%20-%20Feature%20Images/2024%20Independent%20Contractor%20Classification%20Compliance%20Update.jpg) # 2024 Independent Contractor Classification Compliance Update [![ProLiant](https://blog.proliant.com/hubfs/Logos/Color%20Proliant/P%20logo%20Glassdoor.jpg)](https://blog.proliant.com/author/proliant) Written by [ProLiant](https://blog.proliant.com/author/proliant) Mar 8, 2024 9:13:49 AM As of January 10, 2024, the DOL introduced a final rule regarding the classification of employees and independent contractors. This update, effective March 11, 2024, includes a revised 6-factor test aimed at safeguarding the rights of employees. The assessment is based on a holistic approach, taking into account all factors collectively. In the new test, it is less likely for a worker to be classified as an independent contractor if they are economically reliant on an employer for work. The six factors considered in the evaluation are as follows: ### 1. The worker’s opportunity for profit or loss The factors listed below, among others, play a crucial role in making the determination: - Whether the worker determines or can meaningfully negotiate the charge or pay for the work provided; - Whether the worker accepts or declines jobs or chooses the order and/or time in which the jobs are performed; - Whether the worker engages in marketing, advertising, or other efforts to expand their business or secure more work; and - Whether the worker makes decisions to hire others, purchase materials and equipment, and/or rent space. The worker's investment in equipment or materials required for the task ### 2. The worker's investment in equipment or materials required for the task The factors listed below, among others, play a crucial role in making the determination: ### 3. The degree of permanence of the working relationship - If the work relationship indefinite in duration, continuous, or exclusive of work for other employers; would weigh in favor of the worker being an employee. - If the work relationship is indefinite in duration, non-exclusive, project-based, or sporadic, based on the worker being in business for themselves and marketing their services or labor to multiple businesses, it would lean towards the worker being classified as an independent contractor. ### 4. The degree to which the employer controls how the work is done Factors relevant to the potential employer's control over the worker encompass assessing whether the potential employer: - Sets the worker's schedule; - Supervises the performance of the work; - Explicitly limits the worker's ability to work for others, or places demands or restrictions on workers that do not allow them to work for others or work when they choose; - Uses technological means to supervise the performance of the work (such as by means of a device or electronically); - Reserves the right to supervise or discipline workers; or - Controls economic aspects of the working relationship, such as the prices or rates for services and the marketing of the services or products provided by the worker. ### 5. The extent to which the service rendered is an integral part of the employer's business Factors include: - If the work performed by a worker is critical, necessary, or central to the potential employer's principal business, then this factor indicates that the worker is an employee. - If the work performed by a worker is not critical, necessary, or central to the potential employer's principal business, then this factor indicates that the worker is an independent contractor. ### 6. The amount of skill and initiative required for the work - This factor indicates employee status where the worker does not use specialized skills in performing the work or where the worker is dependent on training from the potential employer to perform the work. - It is the worker’s use of specialized skills in connection with business-like initiative that indicates that the worker is an independent contractor. [Click here](https://www.dol.gov/agencies/whd/government-contracts/small-entity-compliance-guide) if you'd like to learn more on the final rule. ### About ProLiant *ProLiant puts the human in human resources. We provide a fully integrated, cloud-based HCM solution that simplifies payroll and HR processes. The company serves small to large clients in multiple industries in all 50 states and is committed to providing the highest quality customer service in the industry.* ### Subscribe to Blog - [Recent](https://blog.proliant.com/2024-independent-contractor-classification-compliance-update#recent) - [Topics](https://blog.proliant.com/2024-independent-contractor-classification-compliance-update#topics) - [Archive](https://blog.proliant.com/2024-independent-contractor-classification-compliance-update#archive) - [Applicant Tracking & Recruitment (15)](https://blog.proliant.com/topic/applicant-tracking-recruitment) - [Automation & Workflows (5)](https://blog.proliant.com/topic/automation-workflows) - [Benefits Administration (14)](https://blog.proliant.com/topic/benefits-administration) - [Compliance (1)](https://blog.proliant.com/topic/compliance) - [Earned Wage Access (12)](https://blog.proliant.com/topic/earned-wage-access) - [Employee Onboarding (9)](https://blog.proliant.com/topic/employee-onboarding) - [HR (32)](https://blog.proliant.com/topic/hr) - [Industry News (11)](https://blog.proliant.com/topic/industry-news) - [Integrations (5)](https://blog.proliant.com/topic/integrations) - [Learning Management System (4)](https://blog.proliant.com/topic/learning-management-system) - [Payroll (30)](https://blog.proliant.com/topic/payroll) - [Performance Management (11)](https://blog.proliant.com/topic/performance-management) - [Recruitment & Retention (12)](https://blog.proliant.com/topic/recruitment-retention) - [Security (1)](https://blog.proliant.com/topic/security) - [Tax Services (8)](https://blog.proliant.com/topic/tax-services) - [Time & Labor Management (1)](https://blog.proliant.com/topic/time-labor-management) - [Toast (1)](https://blog.proliant.com/topic/toast) [More...](https://blog.proliant.com/2024-independent-contractor-classification-compliance-update#) - [June 2026 (1)](https://blog.proliant.com/archive/2026/06) - [April 2026 (1)](https://blog.proliant.com/archive/2026/04) - [February 2026 (1)](https://blog.proliant.com/archive/2026/02) - [December 2025 (1)](https://blog.proliant.com/archive/2025/12) - [October 2025 (1)](https://blog.proliant.com/archive/2025/10) - [July 2025 (2)](https://blog.proliant.com/archive/2025/07) - [June 2025 (1)](https://blog.proliant.com/archive/2025/06) - [May 2025 (1)](https://blog.proliant.com/archive/2025/05) - [April 2025 (1)](https://blog.proliant.com/archive/2025/04) - [March 2025 (1)](https://blog.proliant.com/archive/2025/03) - [February 2025 (1)](https://blog.proliant.com/archive/2025/02) - [January 2025 (1)](https://blog.proliant.com/archive/2025/01) - [November 2024 (1)](https://blog.proliant.com/archive/2024/11) - [October 2024 (4)](https://blog.proliant.com/archive/2024/10) - [September 2024 (2)](https://blog.proliant.com/archive/2024/09) - [August 2024 (4)](https://blog.proliant.com/archive/2024/08) - [June 2024 (1)](https://blog.proliant.com/archive/2024/06) - [May 2024 (2)](https://blog.proliant.com/archive/2024/05) - [April 2024 (3)](https://blog.proliant.com/archive/2024/04) - [March 2024 (1)](https://blog.proliant.com/archive/2024/03) - [February 2024 (1)](https://blog.proliant.com/archive/2024/02) - [January 2024 (1)](https://blog.proliant.com/archive/2024/01) - [December 2023 (1)](https://blog.proliant.com/archive/2023/12) - [November 2023 (2)](https://blog.proliant.com/archive/2023/11) - [October 2023 (8)](https://blog.proliant.com/archive/2023/10) - [September 2023 (5)](https://blog.proliant.com/archive/2023/09) - [August 2023 (1)](https://blog.proliant.com/archive/2023/08) - [July 2023 (3)](https://blog.proliant.com/archive/2023/07) - [June 2023 (6)](https://blog.proliant.com/archive/2023/06) - [May 2023 (4)](https://blog.proliant.com/archive/2023/05) - [April 2023 (2)](https://blog.proliant.com/archive/2023/04) - [March 2023 (2)](https://blog.proliant.com/archive/2023/03) - [February 2023 (3)](https://blog.proliant.com/archive/2023/02) - [January 2023 (1)](https://blog.proliant.com/archive/2023/01) - [December 2022 (3)](https://blog.proliant.com/archive/2022/12) - [November 2022 (2)](https://blog.proliant.com/archive/2022/11) - [October 2022 (1)](https://blog.proliant.com/archive/2022/10) - [September 2022 (1)](https://blog.proliant.com/archive/2022/09) - [August 2022 (5)](https://blog.proliant.com/archive/2022/08) - [July 2022 (2)](https://blog.proliant.com/archive/2022/07) - [June 2022 (2)](https://blog.proliant.com/archive/2022/06) - [May 2022 (6)](https://blog.proliant.com/archive/2022/05) - [April 2022 (5)](https://blog.proliant.com/archive/2022/04) - [March 2022 (4)](https://blog.proliant.com/archive/2022/03) - [February 2022 (3)](https://blog.proliant.com/archive/2022/02) - [January 2022 (3)](https://blog.proliant.com/archive/2022/01) - [December 2021 (3)](https://blog.proliant.com/archive/2021/12) - [November 2021 (2)](https://blog.proliant.com/archive/2021/11) - [October 2021 (2)](https://blog.proliant.com/archive/2021/10) - [September 2021 (1)](https://blog.proliant.com/archive/2021/09) - [August 2021 (1)](https://blog.proliant.com/archive/2021/08) - [July 2021 (3)](https://blog.proliant.com/archive/2021/07) - [October 2020 (1)](https://blog.proliant.com/archive/2020/10) - [September 2020 (1)](https://blog.proliant.com/archive/2020/09) - [August 2020 (1)](https://blog.proliant.com/archive/2020/08) - [June 2020 (2)](https://blog.proliant.com/archive/2020/06) - [January 2020 (3)](https://blog.proliant.com/archive/2020/01) - [December 2019 (4)](https://blog.proliant.com/archive/2019/12) - [November 2019 (3)](https://blog.proliant.com/archive/2019/11) - [October 2019 (1)](https://blog.proliant.com/archive/2019/10) - [September 2019 (1)](https://blog.proliant.com/archive/2019/09) - [July 2019 (2)](https://blog.proliant.com/archive/2019/07) - [June 2019 (4)](https://blog.proliant.com/archive/2019/06) - [May 2019 (11)](https://blog.proliant.com/archive/2019/05) - [April 2019 (3)](https://blog.proliant.com/archive/2019/04) - [January 2019 (1)](https://blog.proliant.com/archive/2019/01) - [December 2018 (1)](https://blog.proliant.com/archive/2018/12) - [November 2018 (1)](https://blog.proliant.com/archive/2018/11) - [August 2018 (1)](https://blog.proliant.com/archive/2018/08) - [February 2018 (2)](https://blog.proliant.com/archive/2018/02) - [January 2018 (3)](https://blog.proliant.com/archive/2018/01) - [November 2017 (1)](https://blog.proliant.com/archive/2017/11) - [October 2017 (2)](https://blog.proliant.com/archive/2017/10) - [August 2017 (2)](https://blog.proliant.com/archive/2017/08) - [May 2017 (1)](https://blog.proliant.com/archive/2017/05) - [March 2017 (1)](https://blog.proliant.com/archive/2017/03) - [January 2017 (1)](https://blog.proliant.com/archive/2017/01) - [August 2016 (2)](https://blog.proliant.com/archive/2016/08) - [April 2016 (1)](https://blog.proliant.com/archive/2016/04) - [March 2016 (1)](https://blog.proliant.com/archive/2016/03) - [February 2016 (1)](https://blog.proliant.com/archive/2016/02) - [October 2015 (2)](https://blog.proliant.com/archive/2015/10) - [July 2015 (1)](https://blog.proliant.com/archive/2015/07) [More...](https://blog.proliant.com/2024-independent-contractor-classification-compliance-update#) Previous Story [← Why Customer Service is Vital When Selecting an HCM](https://blog.proliant.com/why-customer-service-is-vital-when-selecting-an-hcm) [** ](https://blog.proliant.com/) Next Story [Navigating Employee Exit Procedures in the Employee Life Cycle →](https://blog.proliant.com/employee-exit-procedures) ** ### Subscribe by Email ## No Comments Yet Let us know what you think [![proliant-white-logo-no-strokes](https://blog.proliant.com/hs-fs/hubfs/0%20-%20Proliant%20Branding/ProLiant%20Logos/proliant-white-logo-no-strokes.png?width=205&height=40&name=proliant-white-logo-no-strokes.png "proliant-white-logo-no-strokes")](https://www.proliant.com/) **Headquarters** 1100 Abernathy Road, Suite 850 Atlanta, GA 30328 877.896.9523 [Need Help?](https://www.proliant.com/contact-us) [Login](https://www.readypayonline.com/Proliant/Login/Login.aspx?) Copyright © 2022 Proliant, Inc. All Rights Reserved. #### Solutions [Applicant Tracking & Recruitment](https://www.proliant.com/applicant-tracking-recruitment) [Time & Labor Management](https://www.proliant.com/time-labor-management) [HR & Benefits Administration](https://www.proliant.com/hr-benefits-administration) [Employee Onboarding](https://www.proliant.com/onboarding) [Online Payroll Services](https://www.proliant.com/payroll-services) [Payroll Tax Services](https://www.proliant.com/payroll-tax-services) [Performance Management](https://www.proliant.com/performance-management) [ReadyPay Today](https://www.proliant.com/readypaytoday) [Learning Management System](https://www.proliant.com/learning-management-system) #### Who We Serve [Your Industry](https://www.proliant.com/your-industry) [Integrations](https://www.proliant.com/integrations) [Partners](https://www.proliant.com/partners) #### Why Proliant [About Us](https://www.proliant.com/about-us) [News](https://blog.proliant.com/inthenews) [Careers](https://www.proliant.com/careers) [Automation](https://www.proliant.com/payroll-automation) [Workflows](https://www.proliant.com/hr-workflows) [Services](https://www.proliant.com/services) #### Legal [Legal](https://www.proliant.com/legal-notices) [Terms](https://www.proliant.com/terms-of-use) [Privacy](https://www.proliant.com/privacy-policy) [Form 1095-C Notice](https://www.proliant.com/employee-1095c-notice)