01.09.24

DOL Unveils Controversial Independent Contractor Rule

The U.S. Department of Labor (DOL) has released a final rule aimed at forcing businesses to classify some staff as employees rather than independent contractors, a move that critics have said would drive up the cost of financial advice. The rule, set to go into effect on March 11, will replace rules implemented during the previous administration that made it easier to treat workers as independent contractors. Under the new rule, companies will have to classify workers as employees if they are “economically dependent” on the firm. In December, the Financial Services Institute argued in a comment letter that the rule would lead to heightened litigation costs for the industry while hampering financial advisors’ ability to change how they affiliate with firms and engage in business outside of the scope of their affiliation with their firms.

Read the full article on Financial Advisor IQ