The proposed regulation includes an “economic reality” test to help determine whether individuals are in business for themselves or economically reliant on an employer. Part of the test includes two factors — whether the person has the opportunity for business profit or loss and to what degree they control the work they perform. Other factors that can be used as “guideposts” are the level of skill required to perform the job, the performance of the worker-employer relationship, and whether the work is “part of an integrated unit of production.” The rule gives some leeway to employers, allowing them to consider a work relationship’s “actual practice” rather than what is contractually or theoretically possible. Some unscrupulous employers use the independent contractor status to deprive those that should be classified as employees of overtime pay, workers’ compensation coverage and other benefits. Foreign-born workers are particular targets because they often are afraid of the repercussions — like deportation and threats of violence against them and their families — of reporting their employers to authorities.
https://www.constructiondive.com/news/labor-department-proposes-revision-of-independent-contractor-test/585725/