New DOL rule could undermine financial advisors’ independent contractor status
January 17, 2024 by Doug Bailey
he U.S. Department of Labor’s new rule to determine whether a worker is an employee or independent contractor includes a six-factor test of the “economic reality” of the relationship between workers and employers. Financial industry advocates fear the rule may undermine advisor’s independent contractor status.
Among other things, the test asks whether the worker depends on the potential employer for continued employment or is operating an independent business.