The U.S. Department of Labor (DOL) announced on May 1 that it would cease enforcement of its 2024 Final Rule regarding independent contractor classification under the Fair Labor Standards Act. The Field Assistance Bulletin 2025-1 (FAB) instructs field personnel on how to handle different enforcement matters. Citing ongoing litigation, the FAB notes the Department’s position in the cases it is reviewing to determine the best approach moving forward including possible rescission.
In place of the Biden regulation, the DOL will look to 2008 guidance on how to determine whether someone should be classified as an independent contractor or an employee. For further information, see Fact Sheet #13 and Opinion Letter. Importantly, the FAB notes that it only applies to whether the DOL will rely on the Biden regulation but does not prevent that regulation from being cited in private litigation. The Alliance will continue to monitor any developments.
