Written by Jeffrey K. Lewis, Esq., Legal Associate, Agricultural and Resource Law Program, Income Tax Schools
The classification of workers as either independent contractors or employees has once again become a focal point of federal labor policy, reflecting the broader ideological shifts that accompany changes in presidential administrations. With the transition to new leadership in the White House, the U.S. Department of Labor (“DOL”) has issued new guidance that redefines the criteria used to determine worker status. This latest interpretation marks a departure from the 2024 Democratic rule (the “2024 Rule”), instead embracing a model more consistent with prior Republican approaches. The change has significant ripple effects for employers and workers as it influences everything from wage protections to benefits eligibility and legal liability.
On May 1, 2025, the DOL’s Wage and Hour Division (“WHD”) issued Field Assistance Bulletin No. 2025-1(the “2025 Bulletin”), offering updated guidance on how to assess whether a worker qualifies as an employee or independent contractor under the Fair Labor Standards Act (“FLSA”).
The 2025 Bulletin explicitly states that the WHD will no longer apply the analytical framework established by the 2024 Rule when evaluating worker classification under the FLSA. Instead, the WHD will rely on the standards set forth in Fact Sheet #13 (July 2008) and Opinion Letter FLSA2019-6 (referred to as the “2008 Guidance” and “2019 Guidance,” respectively). However, the 2025 Bulletin clarifies that the 2024 Rule remains applicable in the context of private litigation. Continue reading Employee or Independent Contractor? Department of Labor’s Latest Guidance Signals Policy Shift