Independent Contractor Rule Update

Workforce
 
Published:May 06, 2025
Dana Ritchie

​The U.S. Department of Labor’s (DOL) Wage and Hour Division recently issued new guidance addressing how its investigators should determine whether a worker is properly classified as an employee or an independent contractor under the Fair Labor Standards Act (FLSA).  

While the department reviews the 2024 final rule, Employee or Independent Contractor Classification Under the Fair Labor Standards Act – which is also being challenged in federal court – agency investigators are directed not to apply the 2024 rule’s analysis in current enforcement matters. Instead, the division will rely on principles outlined in Fact Sheet #13​ and further informed by the reinstated Opinion Letter FLSA2019-6, which addresses classification in the context of virtual marketplace platforms. While the 2024 rule remains in effect, it will not be applied in DOL investigations unless back wages or penalties have already been assessed. 

The DOL state in a press release, “...this approach provides greater clarity for businesses and workers navigating modern work arrangements while legal and regulatory questions are resolved.” The DOL went on to note, “this guidance does not change existing regulations but reflects how the department is allocating enforcement resources during the review of the 2024 rule.” 

For additional guidance beyond the field assistance bulletin, workers and employers can contact the Wage and Hour Division at its toll-free helpline, 866-4US-WAGE (487-9243). More information is also available in this DuaneMorris update​, which includes key takeaways for employers.  
 

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