IBDs scramble after DoL nixes independent contractor rule
May 18, 2021 by Kenneth Corbin
President Biden’s Department of Labor dealt the independent broker-dealer community a setback when it rescinded a Trump-era regulation regarding independent contractors, a favored business structure for registered reps.
The original rule would have made it easier for businesses to deem workers as independent contractors. It was not sector-specific, instead relying on what the DoL calls an “economic reality test” to determine whether workers are in business for themselves or should be classified as employees.