The U.S. Department of Labor (DOL) has announced it will not apply the 2024 independent contractor rule, which narrowed the scope of independent contractor classification, in its enforcement of the Fair Labor Standards Act (FLSA). While the announcement will make it easier for employers to classify workers as independent contractors, the 2024 rule remains intact for purposes of private litigation.
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Workers who are classified as independent contractors may prefer that classification and the freedom that comes along with the traditional relationship such contractors have with the entity engaging them for services, said Jason Reisman, an attorney with Blank Rome in Philadelphia.
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Under many federal laws, potential, current, and past employees are entitled to certain protections that nonemployees, including independent contractors, do not receive. Misclassified workers who should be considered employees under civil rights laws may be entitled to protection under anti-discrimination laws. Misclassified workers also may be entitled to benefits other employees receive, Reisman said. And they may be entitled to unpaid and paid leave under federal, state, and local laws.
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"DOL Gives Extra Leeway for Independent Contractor Classification," by Allen Smith was published in SHRM on May 9, 2025.
