DOL’s Guidance on How to Determine Employee or Independent Contractor Status

The U.S. Department of Labor’s Wage and Hour Division issued a field assistance bulletin providing guidance on determining employee or independent contractor status under the Fair Labor Standards Act. As the department reviews the 2024 final rule on Employee or Independent Contractor Classification, which is being challenged in federal court, agency investigators are instructed not to apply the 2024 rule’s analysis in current enforcement matters. Instead, the division will rely on longstanding principles, further informed by classification in the context of virtual marketplace platforms. This approach offers greater clarity for businesses and workers navigating modern work arrangements while legal and regulatory questions are resolved. The guidance does not change existing regulations but reflects how the department is allocating enforcement resources during the review of the 2024 rule. It supersedes any prior or conflicting guidance provided to Wage and Hour Division staff on enforcement related to independent contractor misclassification. The department may still exercise enforcement authority in individual cases deemed appropriate by the Wage and Hour Administrator or a designee. For additional guidance beyond the field assistance bulletin, workers and employers can contact the Wage and Hour Division at its toll-free helpline, 866-4US-WAGE (487-9243).