The U.S. Department of Labor instructed its investigators Wednesday to stop using the 2024 independent contractor classification rule while the agency reviews the regulation that is currently facing legal challenges.
In a field assistance bulletin, the Wage and Hour Division directed enforcement staff to rely instead on longstanding principles outlined in Fact Sheet #13 and Opinion Letter FLSA2019-6 when determining whether workers should be classified as employees or independent contractors under the Fair Labor Standards Act.
The guidance applies specifically to how the agency approaches classification during enforcement actions while the 2024 rule, “Employee or Independent Contractor Classification Under the Fair Labor Standards Act,” undergoes review and litigation.
The department indicated the approach aims to provide clarity for businesses and workers navigating modern work arrangements while regulatory questions remain unresolved. Officials emphasized that the guidance doesn’t change existing regulations but reflects a temporary enforcement strategy.
The bulletin supersedes any prior or conflicting guidance given to Wage and Hour Division staff on independent contractor misclassification enforcement. Despite the temporary pause in using the 2024 rule’s analysis, the department noted it may still exercise enforcement authority in individual cases when deemed appropriate by the Wage and Hour Administrator or a designee.
Workers and employers seeking additional guidance beyond the field assistance bulletin can contact the Wage and Hour Division through its toll-free helpline at 866-4US-WAGE (487-9243).
