Compliance Stuff

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...

  In a series of swift and game-changing moves, President Donald Trump summarily dismissed National Labor Relations Board (NLRB) General Counsel Jennifer Abruzzo and Board Member Gwynne Wilcox late last night. While Abruzzo’s dismissal was widely anticipated, the unprecedented dismissal of Member Wilcox has raised significant procedural and policy questions for the federal labor agency in the short term and beyond . What do employers need to know about these two key moves? What Happened? Both Abruzzo and Wilcox were key figures at the NLRB under the previous administration. Abruzzo, viewed as one of President Joe Biden’s most progressive appointments, served as General Counsel – a role with broad prosecutorial discretion over labor law violations in the private sector. She pursued a more expansive view of workers’ rights, tackling issues such as restrictions on “ Black Lives Matter ” insignia,  noncompete clauses , so-called “ captive audience ” meetings, and the employment st...