Independent Contractor Rule Updated
The Labor Department will use older guidance to assess workers under the FLSA for enforcement while reconsidering the current rule.
WASHINGTON — The U.S. Department of Labor’s Wage and Hour Division recently issued a field assistance bulletin for Wage and Hour Division staff that provides an analysis for how workers should be assessed under the Fair Labor Standards Act (FLSA).
The guidance is a departure from the department’s 2024 independent contractor rule for how workers should be classified as independent contractors or employees. Additionally, the Labor Department explained that the 2024 independent contractor rule remains in effect for private litigation; however for enforcement purposes, the department will rely on Fact Sheet #13 from July 2008, and the Opinion Letter FLSA 2019-6. The department further explained that it is reviewing the current rule and working to develop the appropriate standard for determining a worker’s classification under the FLSA and is reconsidering the 2024 final rule. The current FLSA standard applies to FLSA investigations only and is not binding in the courts.
NAR will continue to provide updates regarding the independent contractor rule and its impact.
Read the Labor Department’s news release.
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