- Posts by Laura E. Holtan
AssociateAttorney Laura Holtan assists employers across industries in navigating complex labor and employment issues, adopting effective practices, and reducing potential risks.
Clients rely on Laura to prepare and negotiate ...
On May 1, 2025, the U.S. Department of Labor’s (DOL) Wage and Hour Division (Division) issued Field Assistance Bulletin (FAB) No. 2025-1 (“FAB 2025-1”), announcing that it is currently working to reformulate the test as to how independent contractor status is determined under the Fair Labor Standards Act (“FLSA”). Although it is unclear what contours the revised rule will eventually take, FAB 2025-1 signals a clear intention to make it easier for businesses to classify workers as independent contractors.
The rulemaking process will take time. FAB 2025-1 accordingly provides that, during the interim, the DOL will no longer enforce a 2024 rule established under the Biden administration. The 2024 rule, which consisted of a non-exhaustive multi-factor test, is largely viewed as placing a difficult hurdle with respect to independent contractor classification.
FAB 2025-1 relaxes the DOL enforcement standard by reverting to the “economic reality” framework outlined in Fact Sheet #13 (July 2008), as informed by Opinion Letter FLSA2019-6. The “economic reality” framework asks whether the worker is an independent contractor in business for themselves, or an employee economically dependent on the business they serve. While this does not involve a single rule or test, significant factors include:
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Recent Updates
- DOL Shelves Independent Contractor Rule
- Time Is Money: A Quick Wage and Hour Tip . . . Contractual Indemnification May Not Guard Against FLSA Claims
- California Court of Appeal Holds That Prospective Meal Waivers for Shifts Between Five and Six Hours are Enforceable
- New Jersey Supreme Court Confirms: Commissions Are Wages Under the New Jersey Wage Payment Law
- Insider Strategies for Wage and Hour Compliance Success: One-on-One with Paul DeCamp