DOL Releases Updated Enforcement Guidance for Independent Contractor Classification

On May 1st, 2025, the Department of Labor (DOL) announced updated federal guidance for the classification of independent contractors. The agency will not enforce a 2024 regulation promulgated under the Biden Administration that sought to tighten the restrictions on the use of independent contractors. Notably, that proposed 2024 regulation is still the subject of pending litigation. The DOL will return to its pre-2024 standards for worker classification.

What is an Independent Contractor and Why Does it Matter? 

An independent contractor is not an employee. Instead, he or she is a self-employed individual who provides services to another party under the terms of a contract. Unlike employees, independent contractors maintain control over how their work is performed, are responsible for their own taxes, and typically do not receive benefits such as health insurance or paid leave. Indeed, they are outside of the protection of many employment law protections. Notably, employers in Florida cannot unilaterally select a workers’ classification. It depends on the actual scope and nature of the work performed.

 DOL Will Not Enforce 2024 Biden-Era Independent Contractor Regulation 

In 2024, the Biden Administration rolled out proposed regulations that would tighten the use of independent contractors by businesses and organizations. The new rule would have created a six-factor “totality of the circumstances” test—the effect of which would have made it more challenging for businesses to classify workers as independent contractors.

On May 1st, 2025, the DOL announced it would no longer enforce the 2024 independent contractor rule implemented during the last administration. The DOL’s decision to halt enforcement means that, for now, it will revert to the previous “economic reality” framework outlined in Fact Sheet #13 and Opinion Letter FLSA2019-6. The older standard considers factors such as the degree of control over the work, the worker’s opportunity for profit or loss, and the permanency of the relationship.

An Overview of the Standard for Independent Contractor Classification in Florida 

Florida law does not have a statutory definition of “independent contractor.” Instead, it relies on common law factors to make determinations. Here is an overview of the key factors:

• Control Over Work: If the employer dictates how tasks are performed, the worker is likely an employee. Independent contractors must retain control over their work.
• Provision of Tools/Equipment: Workers who supply their own tools and equipment are more likely to be considered independent contractors.
• Opportunity for Profit or Loss: Independent contractors typically have the ability to make a profit or incur a loss based on their managerial skills.
• Permanency of Relationship: A long-term, continuous relationship may indicate an employee status. Short-term relationships are more common with independent contractors.

 Speak to a Wage and Hour Lawyer in Florida 

Independent contractor status matters. If an employee is misclassified as an independent contractor, it will have a number of different adverse implications for them. Further, an employer who misclassifies a worker can face liability. If you have any questions about an employment law matter, an experienced Florida employment attorney can help.