DOL Easing Up on Independent Contractor Misclassification Enforcement

May 12, 2025

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 independent contractors. While the DOL has not yet rescinded the 2024 rule, the agency said that it continues to work toward returning to a simpler standard for determining whether a worker is an employee or an independent contractor under federal wage and hour rules. In the meantime, the 2024 rule, which is currently under challenge in federal courts, remains in effect for private litigation purposes. Here are a few key points you need to know about this latest development.

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