{"id":5800,"date":"2025-05-15T09:17:33","date_gmt":"2025-05-15T14:17:33","guid":{"rendered":"https:\/\/www.employco.com\/blog\/?p=5800"},"modified":"2025-05-15T09:17:36","modified_gmt":"2025-05-15T14:17:36","slug":"hr-newsletter-independent-contractor-determination-new-dol-guidance","status":"publish","type":"post","link":"https:\/\/www.employco.com\/blog\/2025\/05\/15\/hr-newsletter-independent-contractor-determination-new-dol-guidance\/","title":{"rendered":"HR Newsletter: Independent Contractor Determination \u2013 New DOL Guidance"},"content":{"rendered":"\n
\"HR<\/figure>\n\n\n\n
<\/div>\n\n\n\n

On May 1, 2025, the U.S. Department of Labor (DOL) issued Field Assistance Bulletin (FAB) 2025-1<\/a> on how to determine employee or independent contractor status when enforcing the Fair Labor Standards Act (FLSA).<\/p>\n\n\n\n

Background<\/strong> – On Jan. 10, 2024, the DOL published a final rule<\/a> revising the agency\u2019s guidance on analyzing who is an employee or independent contractor under the FLSA. This rule rescinded the 2021 Independent Contractor Rule. Several lawsuits are pending in federal courts challenging the 2024 final rule. In those lawsuits, the DOL has taken the position that it is reconsidering the final rule, including whether to rescind it. Additionally, the DOL\u2019s Wage and Hour Division (WHD) is currently developing a standard for determining employee versus independent contractor status under the FLSA.<\/p>\n\n\n\n\n\n\n\n

Enforcement Guidance<\/strong> – While the DOL reviews the 2024 final rule, the WHD will no longer apply the rule\u2019s analysis when determining employee versus independent contractor status in FLSA investigations. Instead, the WHD will rely on principles outlined in Fact Sheet #13<\/a> and the reinstated Opinion Letter FLSA2019-6,<\/a> which addresses classification in the context of virtual marketplace platforms. According to the DOL, this approach will provide greater clarity for businesses and workers navigating modern arrangements while legal and regulatory questions are resolved.<\/p>\n\n\n\n

Employer Takeaway<\/strong> – The DOL\u2019s guidance does not change existing regulations but reflects how the department is allocating enforcement resources during the review of the 2024 final rule. The FAB supersedes any prior or conflicting guidance provided to the WHD staff on enforcement related to independent contractor misclassification. Until further action is taken, the 2024 final rule remains in effect for purposes of private litigation, and the FAB does not change the rights of employees or the responsibilities of employers under the FLSA. Employers should continue to monitor the situation for updates.<\/p>\n","protected":false},"excerpt":{"rendered":"

On May 1, 2025, the U.S. Department of Labor (DOL) issued Field Assistance Bulletin (FAB) 2025-1 on how to determine employee or independent contractor status when enforcing the Fair Labor Standards Act (FLSA). Background – On Jan. 10, 2024, the… <\/p>\n

Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[31],"tags":[],"class_list":["post-5800","post","type-post","status-publish","format-standard","hentry","category-hr-newsletter"],"featured_image_src":null,"author_info":{"display_name":"Employco USA","author_link":"https:\/\/www.employco.com\/blog\/author\/employcousa\/"},"yoast_head":"\r\nHR Newsletter: Independent Contractor Determination \u2013 New DOL Guidance - Employco Blog<\/title>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.employco.com\/blog\/2025\/05\/15\/hr-newsletter-independent-contractor-determination-new-dol-guidance\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"HR Newsletter: Independent Contractor Determination \u2013 New DOL Guidance - Employco Blog\" \/>\r\n<meta property=\"og:description\" content=\"On May 1, 2025, the U.S. Department of Labor (DOL) issued Field Assistance Bulletin (FAB) 2025-1 on how to determine employee or independent contractor status when enforcing the Fair Labor Standards Act (FLSA). 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The final rule was scheduled to take effect on March 1, 2021; however, on February 26, 2021, the DOL delayed the rule\u2019s effective date\u2026","rel":"","context":"In "HR Newsletter"","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"Department of Labor","src":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.employco.com\/images\/newsletter\/HR\/Blog\/September20_DOL.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":5832,"url":"https:\/\/www.employco.com\/blog\/2025\/06\/18\/hr-newsletter-dol-rescinds-guidance-on-cryptocurrency-in-401k-plans\/","url_meta":{"origin":5800,"position":4},"title":"HR Newsletter: DOL Rescinds Guidance on Cryptocurrency in 401(k) Plans","author":"Employco USA","date":"June 18, 2025","format":false,"excerpt":"On May 28, 2025, the U.S. Department of Labor (DOL) released Compliance Assistance Release No. 2025-01, which rescinds prior 2022 guidance that cautioned plan fiduciaries to exercise \"extreme care\" before they considered adding a cryptocurrency option to a 401(k) plan\u2019s investment menu for plan participants. 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Although these specific policy objectives remain to be seen, employers may look to the campaign policies on which President-elect Trump ran, as well as the\u2026","rel":"","context":"In "HR Newsletter"","block_context":{"text":"HR Newsletter","link":"https:\/\/www.employco.com\/blog\/category\/employco-in-the-news\/hr-newsletter\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts\/5800","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/comments?post=5800"}],"version-history":[{"count":1,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts\/5800\/revisions"}],"predecessor-version":[{"id":5801,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/posts\/5800\/revisions\/5801"}],"wp:attachment":[{"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/media?parent=5800"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/categories?post=5800"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.employco.com\/blog\/wp-json\/wp\/v2\/tags?post=5800"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}