DOL’s Wage and Hour Division has issued a proposed rule for assessing whether a worker is an employee or independent contractor under the Fair Labor Standards Act, the Family and Medical Leave Act, and the Migrant and Seasonal Agricultural Worker Protection Act.
If finalized, the rule would largely revive a framework from the first Trump administration and rescind the Biden Administration’s 2024 rule. Critics have charged that the Biden approach tends to favor a finding of employee status, and DOL stopped enforcing the 2024 rule in May 2025. DOL is accepting public comments on the proposed rule through April 28.
The proposed rule would evaluate five factors, emphasizing: (1) the nature and degree of the worker’s control over the work, and (2) the worker’s opportunity for profit or loss. Supporters argue that this approach would offer clear, predictable outcomes aligned with federal law. Critics contend that it would weaken worker protections by making it harder for a worker to qualify as an employee.
Employers should consider registering for Fundamentals of Wage and Hour Compliance, a course offered by the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association. CWC members can read more here.