Description
HRCI & SHRM Approved Webinar | CEUs = 1.5 Credit Hours
In 2025, the Department of Labor (DOL) has signalled a shift in its enforcement position on independent contractor classification under the Fair Labor Standards Act (FLSA), potentially making it easier for businesses to classify workers as contractors. The DOL is no longer enforcing the 2024 independent contractor rule and will instead rely on a more traditional “economic reality” test for determining worker status. This shift may lead to more businesses classifying workers as independent contractors at the federal level.
Instead of the 2024 rule, the DOL will use the traditional “economic reality” test, which considers various factors like the degree of control by the employer, the permanency of the relationship, and the worker’s opportunities for profit or loss. In place of the 2024 Rule, the DOL will apply the prior “economic realities” test as described in Fact Sheet #13 (2008) and Opinion Letter FLSA2019-6.
What will You Learn:
- How the new Independent Contractor vs Employee will change the landscape for Employers
- What tools Employers need to use to determine the classification of their workers
- How freelancers will adapt to the updated classification when they initiate contracts with Employers
- Which change will impact Employers the most
- What the new rule’s six non-exhaustive factors to guide the independent contractor analysis
- What legal cases will emerge as a result of this updated rule
- Learn the most effective method Employers need to meet compliance expectations
- What the “Economic Reality Test” is and how employees will be classified going further
Why you should Attend:
The DOL’s decision to suspend enforcement of the 2024 Rule means WHD investigators will evaluate independent contractor status under the FLSA using the more familiar, broad “economic reality” test the DOL has used for decades, which is widely viewed as more employer-friendly.
Although no new legal duties are being imposed, employers should continue to carefully assess how workers actually function in the job — not just how the job is written in contracts, job descriptions, or titles. While the 2024 Rule technically remains in place, the DOL WHD is not enforcing it. For now, the DOL is returning to its traditional interpretation of employee v. independent contractor status under the FLSA, while awaiting the outcome of ongoing litigation and considering potential rule changes.
Who should Attend:
- All Employers
- Business Owners
- Company Leadership
- Compliance professionals
- HR Professionals
- Managers/Supervisors
