Department of Labor Stops Enforcing Protections Against Misclassification for Independent Contractors

On May 2, the U.S. Department of Labor published field guidance for the agency’s enforcement staff, announcing that they would no longer enforce DOL’s 2024 regulation on independent contractor status under the Fair Labor Standards Act. This announcement also included reinstating an opinion from the first Trump administration’s DOL that gave on-demand/gig economy apps a wide berth in determining whether workers on their platforms were truly independent contractors or should be classified as employees. 

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. The DOL says that this approach provides greater clarity for businesses and workers navigating modern work arrangements while legal and regulatory questions are resolved. 

This guidance does not change existing regulations but reflects how the department is allocating enforcement resources during the review of the 2024 rule. The FAB supersedes any prior or conflicting guidance provided to Wage and Hour Division staff on enforcement related to independent contractor misclassification. The department may still exercise enforcement authority in individual cases deemed appropriate by the Wage and Hour Administrator or a designee.

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).