HR - Independent Contractors

Dear Littler: What Misclassification Issues Are There in the Work(out) Place? Dear Littler: It took longer than I expected, but I finally got my fitness studio up and running! Between negotiating the lease, buying equipment, marketing, and finding some quality trainers, my head is just swimming. I finally took a break last night, but I got a concerning text message from our night manager saying that one of our trainers was asking why the manager was an employee, but he wasn’t. Should I be worri…

On May 29, 2026, the U.S. District Court for the District of New Jersey found that while a certified class of performers on an adult streaming platform was correctly classified as independent contractors under the federal Fair Labor Standards Act (FLSA), the class did not meet the standard to be

Companies using independent-contractor labor take note: The DOL proposes a return to the “economic reality” test for classification standards.

On February 26, 2026, the U.S. Department of Labor (DOL) released a proposed rule to modify the analysis for determining independent contractor status under the Fair Labor Standards Act (FLSA). The proposal would rescind and replace a 2024 Biden-era final rule on independent contractor classificatio

U.S. Department of Labor Proposes New(ish) Worker-Classification Standards The U.S. Department of Labor (DOL) proposed a new rule , entitled the "Employee or Independent Contractor Status Under the Fair Labor Standards Act, Family and Medical Leave Act, and Migrant and Seasonal Agricultural Worker P

On October 16, 2025, the U.S. Court of Appeals for the Eleventh Circuit ruled that three insurance adjusters had been misclassified as independent contractors because, based on a complete analysis of the reality of the adjusters’ working relationship with two insurance companies, a jury could reason

Employee vs. Independent Contractor: Labels Don’t Control the Outcome, Says the Eleventh Circuit In assessing whether a worker is an employee or an independent contractor, the Eleventh Circuit recently re-confirmed that it “does not care about the label put on the relationship by the parties.” Galar

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 doo

Citing Legal Challenges, Trump’s DOL to Overturn Biden-Era Independent Contractor Rule; Will Consider Next Steps for New Rule The U.S. Department of Labor (DOL) announced through the Trump administration’s unified agenda its intention to rescind its own 2024 final rule, which provided an analysis fo

On July 17, 2025, the U.S. Court of Appeals for the Fourth Circuit upheld a $9 million judgment against a medical staffing company for misclassifying nursing assistants and nurses as independent contractors. The U.S. Department of Labor (DOL) alleged Steadfast Medical Staffing, based in Norfolk, Va.

Tax Bill Changes 1099 Reporting Thresholds The “One Big Beautiful Bill Act” signed into law on July 4, 2025, makes two important changes to tax reporting requirements that should be of interest to employers. 1099 Reporting Threshold Increased to $2,000 and Indexed for Inflation tgelbman@littler.com

On May 1, 2025, the U.S. Department of Labor (DOL) issued Field Assistance Bulletin (FAB) No. 2025-1, titled “FLSA Independent Contractor Misclassification Enforcement Guidance.” In the bulletin, the DOL announced that it will no longer enforce the 2024 independent contractor rule established under

DOL Reinstates Virtual Marketplace Platform Opinion Letter Signaling Return to Relaxed Independent Contractor Test and Acceptance of Gig Platform Model In recent months, the Department of Labor (DOL) has seen an overhaul of its agency leadership. First, President Trump appointed Secretary of Labor L

TakeawaysWhen analyzing employment status under the FLSA, DOL investigators will apply previous subregulatory guidance, instead of the 2024 independent contractor final rule, including a 2019 opinion letter addressing independent contractor status and a 2008 fact sheet. Several lawsuits challenging

DOL Hits Pause on Enforcement of Biden-Era Independent Contractor Rule, Suggests New or Changed Rule Forthcoming As expected with a change in the White House, and as very recently foretold in Department of Labor court filings, the Trump DOL announced via a Field Assistance Bulletin on May 1 that it

TakeawaysIn several ongoing lawsuits, the DOL has notified the courts that it will reconsider its 2024 independent contractor rule and may issue a new rule.The 2024 rule formally rescinded an independent contractor rule issued at the close of the first Trump Administration.The 2024 rule remains in e

The Trump Administration has asked the U.S. Court of Appeals for the Fifth Circuit to postpone oral argument in a lawsuit challenging President Joe