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B-332845 1 (2021-02-03)

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GAO U.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington,  DC  20548


B-332845



February 3, 2021

Chairman
Ranking Member
Committee on Health, Education, Labor, and Pensions
United States Senate

The Honorable Bobby Scott
Chairman
The Honorable Virginia Foxx
Republican Leader
Committee on Education and Labor
House of Representatives

Subject: Department of Labor, Wage and Hour Division: Independent Contractor Status Under the Fair
       Labor Standards Act

Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule
promulgated by the Department of Labor, Wage and Hour Division (Department) entitled Independent
Contractor Status Under the Fair Labor Standards Act (RIN: 1235-AA34). We received the rule on
January 7, 2021. It was published in the Federal Register as final regulations on January 7, 2021.
86 Fed. Reg. 1168. The stated effective date of the rule is March 8, 2021.

According to the Department, the final rule revises the Department's interpretation of independent
contractor status under the Fair Labor Standards Act, 29 U.S.C. § 201 et seq. The Department stated the
final rule is meant to promote certainty for stakeholders, reduce litigation, and encourage innovation in the
economy.

Enclosed is our assessment of the Department's compliance with the procedural steps required by
section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. If you have any questions about this
report or wish to contact GAO officials responsible for the evaluation work relating to the subject matter of
the rule, please contact Shari Brewster, Assistant General Counsel, at (202) 512-6398.






Shirley A. Jones
Managing Associate General Counsel

Enclosure

cc:    Robert Waterman
       Compliance Specialist
       Department of Labor

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