3-day Virtual Seminar

DOL Reverses Course on Independent Contractor Rule for 2025! How Will Employers Adapt to the Change?

Overview

In 2025, the Department of Labor (DOL) has signaled a shift in its enforcement position on independent contractor classification under the Fair Labor Standards Act (FLSA), potentially making it easier for businesses to classify workers as contractors. The DOL is no longer enforcing the 2024 independent contractor rule and will instead rely on a more traditional "economic reality" test for determining worker status. This shift may lead to more businesses classifying workers as independent contractors at the federal level. 

Instead of the 2024 rule, the DOL will use the traditional "economic reality" test, which considers various factors like the degree of control by the employer, the permanency of the relationship, and the worker's opportunities for profit or loss. 

In place of the 2024 Rule, the DOL will apply the prior "economic realities" test as described in Fact Sheet #13 (2008) and Opinion Letter FLSA2019-6. This framework focuses on whether the worker is economically dependent on the employer (and, thus, an employee) or in business for themselves (and, thus, an independent contractor). time for your organization as Managers will  be more informed and be prepared.

Why you should Attend

The DOL's decision to suspend enforcement of the 2024 Rule means WHD investigators will evaluate independent contractor status under the FLSA using the more familiar, broad "economic reality" test the DOL has used for decades, which is widely viewed as more employer friendly. 
Although no new legal duties are being imposed, employers should continue to carefully assess how workers actually function in the job not just how the job is written in contracts, job descriptions, or titles.

While the 2024 Rule technically remains in place, the DOL WHD is not enforcing it. For now, the DOL is returning to its traditional interpretation of employee v. independent contractor status under the FLSA, while awaiting the outcome of ongoing litigation and considering potential rule changes.

Although no new legal duties are being imposed, employers should continue to carefully assess how workers actually function in the job not just how the job is written in contracts, job descriptions, or titles. While the 2024 Rule technically remains in place, the DOL WHD is not enforcing it. For now, the DOL is returning to its traditional interpretation of employee v. independent contractor status under the FLSA, while awaiting the outcome of ongoing litigation and considering potential rule changes.

Areas Covered in the Session

• Learn how the new Independent Contractor vs Employee will change the landscape for Employers
  
• Learn what tools Employers need to use to determine the classification of their workers
  
• Learn how freelancers will adapt to the updated classification when they initiate contracts with Employers
  
• Learn which change will impact Employers the most
  
• Learn what the new rule's six non-exhaustive factors to guide the independent contractor analysis
  
• Learn what legal cases will emerge as a result of this updated rule
  
• Learn the most effective method Employers need to meet compliance expectations
  
• Learn what the "Economic Reality Test" is and how employees will be classified going further
  

Who Will Benefit

• All