The Employer’s Wage and Hour Advisor

Recently, the U.S. Department of Labor (“DOL”) Wage and Hour Division issued a significant policy shift, announcing it will no longer enforce or apply the 2024 Final Rule on independent contractor classification. The DOL specifically instructed its investigators not to use the 2024 Rule’s analysis in enforcement matters. This move effectively suspends the DOL’s reliance on the more restrictive, multi-factor economic reality test introduced in the 2024 Rule, which had aimed to narrow the circumstances under which workers could be classified as independent contractors under the Fair Labor Standards Act (FLSA).