News & Analysis as of

Misclassification Independent Contractors Fair Labor Standards Act (FLSA)

Brooks Pierce

Fourth Circuit Affirms Multi-Million Dollar Decision, Underscoring Risks in Worker Misclassification

Brooks Pierce on

Many businesses rely on independent contractors to stay flexible, control costs, and meet fluctuating demand, but misclassifying those workers can carry massive financial consequences. On July 17, 2025, the Fourth Circuit...more

Jackson Lewis P.C.

When ‘Independent Contractors’ Are Actually Employees: Lessons from the $9.3M Steadfast Medical Staffing Judgment

Jackson Lewis P.C. on

The U.S. Court of Appeals for the Fourth Circuit recently affirmed a $9.3 million judgment against a medical staffing agency in a Department of Labor (DOL) Fair Labor Standards Act (FLSA) enforcement action alleging nurses...more

Constangy, Brooks, Smith & Prophete, LLP

Fourth Circuit’s Steadfast ruling clarifies independent contractor status

The majority of a three-judge panel of the U.S. Court of Appeals for the Fourth Circuit has upheld a finding that a medical staffing agency misclassified approximately 1,100 nurses as independent contractors and owed them...more

Troutman Pepper Locke

Home Improvement and Legal Services Industries Under Attack for Independent Contractor Misclassification Claims: June 2025 IC...

Troutman Pepper Locke on

Last month, there were only a couple of legal developments in the area of independent contractor (IC) compliance and misclassification, but they were significant because two more industries — home improvement and legal...more

FordHarrison

EntertainHR: Advice from Anora: Classify Correctly!

FordHarrison on

I have said it many times – summer is for movies! Blockbusters, indies, and comedies (or whatever films you enjoy) just make a summer night better. Summer is also halfway to the film industry’s most illustrious awards show,...more

Venable LLP

A Glimmer of Hope for Employers Who Rely on Gig Workers: The DOL Will Not Enforce the 2024 Independent Contractor Rule

Venable LLP on

Positive news for employers: the Department of Labor (DOL) announced it will no longer enforce the 2024 Biden-era independent contractor final rule that aimed to reclassify gig workers as employees rather than independent...more

Cranfill Sumner LLP

We Can Work It Out: U.S. Department of Labor Pauses Reliance on 2024 Independent Contractor Rule in its Enforcement of Independent...

Cranfill Sumner LLP on

The U.S. Department of Labor (DOL) is again signaling changes in how it will evaluate independent contractor relationships in its enforcement actions. In 2024, the department issued a final rule that revised the standards...more

Bass, Berry & Sims PLC

DOL Announces Enforcement Position on Independent Contractor Rule

Bass, Berry & Sims PLC on

On May 1, the U.S. Department of Labor (DOL) issued a Field Assistance Bulletin announcing that the Wage and Hour Division (WHD) will no longer enforce the 2024 independent contractor Final Rule previously established by the...more

Stoel Rives - World of Employment

DOL Signals Business Friendly Independent Contractor Standard: What Employers Need to Know

The U.S. Department of Labor (DOL) recently stated that it will not enforce an employee-friendly independent contractor rule implemented by the Biden administration in 2024 (“Biden Rule”). The Biden Rule made it more...more

Harris Beach Murtha PLLC

DOL Pauses Enforcement of 2024 Rule on Independent Contractor Classifications

In February 2024, we reported the U.S. Department of Labor (DOL) issued a Final Rule revising the DOL’s guidance on how to analyze who is an employee or independent contractor for purposes of minimum wage and overtime pay...more

McAfee & Taft

Gavel to Gavel: It just got easier to classify workers as independent contractors

McAfee & Taft on

Surging changes to workplace laws understandably have employers suffering from whiplash. Historically, employment laws have shifted when presidential administrations have changed. A May 1 announcement by the U.S. Department...more

Whiteford

Employment Law Update: U.S. Department of Labor Resurrects Guidance Classifying Workers as Independent Contractors

Whiteford on

The U.S. Department of Labor’s Wage and Hour Division (“DOL”) under the Trump administration has doubled down on its commitment to the traditional economic-realities analysis for determining whether workers are employees or...more

Poyner Spruill LLP

DOL Enforcement Guidance Underscores Favorable Shift for Contractor Classifications

Poyner Spruill LLP on

On May 1, 2025, the United States Department of Labor (“DOL”) published the first Field Assistance Bulletin of the year providing guidance to Wage and Hour Division (“WHD”) field staff regarding the proper analysis to apply...more

McAfee & Taft

DOL signals return to employer-friendly worker classification standards

McAfee & Taft on

Surging changes to workplace laws understandably have employers suffering from whiplash. Historically, employment laws have shifted when presidential administrations have changed. A May 1, 2025, announcement by the U.S....more

Polsinelli

DOL Abandons 2024 Independent Contractor Test

Polsinelli on

What You Need to Know - The U.S. Department of Labor has announced it will no longer enforce the 2024 independent contractor rule under the Fair Labor Standards Act (FLSA), reverting to the more employer-friendly 2008...more

Offit Kurman

Navigating Contractor vs. Employee Classification

Offit Kurman on

In this episode of OK at Work, Sarah Sawyer and Russell Berger from Offit Kurman delve into the intricate and often confusing topic of independent contractor classification. They discuss the various tests and criteria used at...more

Akerman LLP - HR Defense

DOL Signals Changes to Independent Contractor Rule

On May 1, 2025, the United States Department of Labor (DOL) Wage and Hour Division (WHD) issued a Field Assistance Bulletin, announcing that it will no longer enforce a 2024 Biden-era independent contractor rule under the...more

Troutman Pepper Locke

Republican-Backed Congressional Proposal in Congress Seeks to Allow Companies to Offer Benefits to Independent Contractors: April...

Troutman Pepper Locke on

Last month, the most significant legal development in the area of independent contractor (IC) compliance and misclassification was on Capitol Hill. Bill Cassidy of Louisiana, a Senate Republican who chairs the Senate Health,...more

Keating Muething & Klekamp PLL

The Independent Contractor Tug-of-War: Navigating the Latest DOL Shifts

Classifying a worker as an independent contractor rather than an employee can be one of the more complicated—and risky—decisions an employer can make, as misclassification can lead to serious legal and financial consequences....more

Vedder Price

U.S. Department of Labor Issues New FLSA Independent Contractor Guidance

Vedder Price on

On May 1, 2025, the U.S. Department of Labor (DOL) published FAB No. 2025-1, providing guidance to its field staff on the analysis to apply when determining whether a worker is an independent contractor or employee for...more

Troutman Pepper Locke

Trump Administration Reissues 2019 Opinion Letter on Independent Contractors and Virtual Marketplace Companies

Troutman Pepper Locke on

The U.S. Department of Labor re-issued an Opinion Letter on the issue of independent contractor (IC) status of an on-demand virtual marketplace company (VMC) that refers end-market consumers to service providers who offer...more

BakerHostetler

DOL Softens Bite on Independent Contractor Test

BakerHostetler on

The DOL announced that it will not enforce the 2024 independent contractor rule. The pre-2024 multi-factor test will be used for FLSA worker classification disputes....more

Fisher Phillips

DOL Easing Up on Independent Contractor Misclassification Enforcement: 3 Key Points on This Big Win for Businesses

Fisher Phillips on

Businesses that rely on freelancers or the “gig economy” have cause for optimism now that the Department of Labor just announced it will no longer enforce a Biden-era final rule that made it harder to classify workers as...more

Troutman Pepper Locke

Travel Industry Exposed to Independent Contractor Misclassification Claims: February 2025 IC Legal News Update

Troutman Pepper Locke on

Few industries are immune from class actions alleging IC misclassification of workers paid on a 1099 basis. One industry that has not yet been besieged by these types of lawsuits is travel, but that may be changing. ...more

Vedder Price

Federal District Court Says Class and Collective Action Waiver Survives Unenforceable Arbitration Agreement

Vedder Price on

On February 12, 2025, the U.S. District Court for the District of Oregon issued an important decision in Porteous v. Flowers Foods, Inc. regarding the enforceability of class and collective action waivers contained in...more

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