Overview
- The proposal elevates two core factors—the nature and degree of control and the worker’s opportunity for profit or loss—while treating skill, permanence and integrated production as less probative guideposts.
- The Department of Labor stresses actual day-to-day practices over contractual labels, noting that requiring legal, safety or quality compliance does not by itself indicate employer control.
- The 2024 rule remains formally in effect until a final regulation is issued, and the timing of any final action is uncertain.
- The draft rule would govern only federal statutes, leaving stricter state tests such as California and Massachusetts’ ABC standards and other federal agencies’ approaches unchanged.
- Public comments are due by April 28, and the Wage and Hour Division had already signaled in 2025 guidance that it would not enforce the 2024 framework, with courts retaining ultimate authority over interpretation.