United States of America: Department of Labor withdrew Employee or Independent Contractor Classification Under the Fair Labor Standards Act

On 1 May 2025, the United States Department of Labor (DOL) stopped the enforcement of the 2024 final rule on Employee or Independent Contractor Classification Under the Fair Labor Standards Act. The rule specified factors for the analysis of whether workers fall under the “employee” or “contractor” definition. The factors included the duration of the relationship between the employee and employer and the degree of importance of the employee's work for the core aims of the employer's business. The DOL noted that the 2024 final rule is being challenged in federal court, and the rule’s enforcement is suspended until the legality of the rule is resolved.