DOL WHD Guidance on FLSA Independent Contractor Enforcement

The U.S. Department of Labor's Wage and Hour Division (WHD) has issued Field Assistance Bulletin No. 2025-1, announcing a significant shift in its enforcement policy regarding the classification of workers as employees versus independent contractors under the Fair Labor Standards Act (FLSA). Effective May 1, 2025, WHD field staff will no longer apply the analysis set forth in the 2024 Rule. Instead, investigations will revert to the standards previously outlined in WHD's Fact Sheet #13 (July 2008) and further informed by Opinion Letter FLSA 2019-6, pending further agency action on the 2024 Rule.

This change means employers may face enforcement actions based on older, potentially broader interpretations of employee status. Compliance officers should review their current contractor classification practices to ensure alignment with the pre-2024 Rule standards. While the 2024 Rule remains in effect for private litigation, WHD's enforcement approach will now follow the older guidance, potentially increasing compliance risks for businesses that have relied on the 2024 Rule's framework. No specific compliance deadline is provided, but the guidance is effective immediately for WHD investigations.