Trump Administration to Rescind Biden-Era Independent Contractor Rule—What Could a New Rule Look Like?
The Trump administration is poised to formally rescind the U.S. Department of Labor’s (DOL) Biden-era rule for classifying workers as independent contractors under the Fair Labor Standards Act (FLSA), after the DOL’s pronouncement that it would no longer enforce the rule. The move would open the door to a potential return to a DOL interpretation of worker classification that would give employers greater clarity. Quick Hits The Trump administration is scheduled to rescind the Biden-era independent contractor rule, months after the DOL stopped enforcing the current rule. The current independent contractor rule, issued in 2024, adopted the multifactor “totality of the circumstances” test that has been used by the courts for years, albeit with commentary signaling enforcement of various factors in a manner that was wrought with potential challenges for employers. This rule still faces numerous legal challenges as a result. Although the immediate action is deregulatory, it is anticipated t...