Monthly Archives: May 2025

DOL Pauses Enforcement of New Independent Contractor Rule — What Employers Need to Know

As of May 1, 2025, The U.S. Department of Labor (DOL) has paused enforcement of its 2024 Independent Contractor Rule, which introduced a more detailed “economic reality” test for determining whether a worker is an employee or an independent contractor under the Fair Labor Standards Act (FLSA). Even though the rule technically remains in effect, DOL investigators have been instructed to stop applying it in active enforcement cases. Instead, the agency is reverting to earlier guidance from 2008 and 2019.

What Was the 2024 Rule?

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