The U.S. Department of Labor (DOL) announced on May 1, 2025, that it will not enforce the Biden administration’s 2024 independent contractor rule while considering a new rule. During this period, the DOL will revert to an earlier independent contractor standard established in 2008 and reaffirmed in 2019.
The 2024 rule had introduced complexities for small businesses attempting to hire and classify workers as independent contractors by implementing a "totality of the circumstances" analysis involving six factors. The National Federation of Independent Business (NFIB) opposed this rule and participated in a lawsuit in the U.S. District Court for the Eastern District of Texas challenging it.
The older standard now being enforced also involves six factors but defines them differently, making them easier to apply.
