On May 1, 2025, the U.S. Department of Labor announced it will no longer enforce a Biden-era rule that makes it harder for companies to use independent contractors, as it works to cancel the regulation, according to the National Newspaper Association.
In Field Assistance Bulletin 2025-1, the Wage and Hour Division stated, “Consistent with the Department’s position on the 2024 Rule expressed in the above-referenced litigation, WHD will no longer apply the 2024 Rule’s analysis when determining employee versus independent contractor status in FLSA investigations. WHD will enforce the FLSA in accordance with Fact Sheet #13 (July 2008)*, and as further informed by Opinion Letter FLSA2019-6 with respect to any matters for which no payment has been made, directly to individuals or to DOL, for back wages and/ or civil money penalties as of May 1, 2025.”
This action furthers administration efforts to rescind the rule which has been the subject of five lawsuits. It follows similar efforts to halt appeals to decisions invalidating the Biden Department of Labor overtime rule in the Fifth Circuit and those challenging decisions blocking the ban on non-compete agreements.
