On February 26, the Department of Labor’s Wage and Hour Division released a proposed rule altering the independent contractor standard under the Fair Labor Standards Act, Family and Medical Leave Act, and Migrant and Seasonal Agricultural Workers Act. The proposal rescinds the agency’s 2024 final rule and reinstates, with slight modifications, the standard outlined in the agency’s 2021 final rule.
Independent Work Coalition Chair Katie Farrell explained, “DOL’s proposed rulemaking is a welcome return to a clear independent contractor standard. Independent contractors are an integral part of nearly every sector of the economy, and this proposal will protect and encourage their continued innovation and entrepreneurship. The 2024 rule provided little clarity for the regulated community, invited frivolous litigation, and chilled opportunities for independent work. This proposal, on the hand other, will provide a practical, predictable standard on which the regulated community, workers, and independent contractors can rely. IWC applauds DOL for recognizing the inherent flaws in the 2024 final rule and moving forward with a standard that better aligns with the realities of today’s economy and workforce."
IWC and 27 organizations sent a letter to leadership at DOL in May 2025 requesting that the agency rescind the 2024 final rule.
