NEWS | Department of Labor (DOL) Issues Guidance on Employee, Independent Contractor Status

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On May 1, the Department of Labor's (DOL) Wage and Hour Division (WHD) issued a field assistance bulletin providing guidance on determining employee or independent contractor status under the Fair Labor Standards Act (FLSA).

According to DOL, agency review of the 2024 final rule is being challenged in federal court. Pending a ruling on this challenge, agency investigators are under direction to not to apply the 2024 rule analysis standards in current enforcement matters.

The field assistance bulletin clarifies that WHD will enforce the FLSA in accordance with the traditional seven-factor analysis, which does not elevate any specific factor in determining employee or independent contractor status. Rather, this traditional seven-factor analysis focuses on "the total activity or situation."

Under the bulletin guidance, the DOL "may still exercise enforcement authority in individual cases deemed appropriated by [WHD] or a designee."

A DOL fact sheet that is consistent with WHD's new enforcement position is available here.