On May 1, the Department of Labor’s (DOL’s) Wage and Hour Division (WHD) issued a field assistance bulletin (FAB No. 2025-1) directing its agency investigators to not use the 2024 worker classification rule when determining whether workers are employees or independent contractors. Instead, agency investigators must rely on “longstanding principles outlined in Fact Sheet #13 and by the reinstated Opinion Letter FLSA2019-6.”

WHD said this enforcement guidance will be in effect while the agency reviews the 2024 final rule. The agency noted the worker classification rule is being challenged in court, and that DOL’s position in that litigation is that it is reconsidering the 2024 rule, including whether to rescind it.

Prospects: The WHD field assistance bulletin noted that this guidance does not change existing regulations but reflects how the department is allocating enforcement resources during the review of the 2024 rule.

 NAIFA Staff Contacts: Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org, or Mike Hedge – Senior Director – Government Relations, at mhedge@naifa.org.