DOL Looks To Restrict Ability To Treat IBD Reps As Independent Contractors

October 11, 2022 by Tracey Longo

The U.S. Department of Labor has proposed a rule that would make it more difficult for independent broker-dealers (IBDs), insurers and other companies to treat professionals who want to hang out their own shingles as independent contractors.

The proposal would require that workers be considered a company’s employees, who are entitled to more benefits and legal protections than contractors, when they are “economically dependent” on the firm. The new rule, which will take at least several months to finalize, would replace a Trump-era regulation that says workers who own their own businesses or have the ability to work for competing companies can be treated as contractors.

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Originally Posted at Financial Advisor on October 11, 2022 by Tracey Longo.