In a communication on May 1, Acting Wage and Hour Division Director Donald Harrison III revealed that several legal challenges are pending in federal courts questioning the validity of the 2024 regulation. He stated that, in accordance with the department’s stance in ongoing litigation, the DOL’s Wage and Hour Division will cease applying the 2024 analysis when making worker classification decisions under the Fair Labor Standards Act (FLSA). The regulation is titled Employee or Independent Contractor Classification under the FLSA.

Harrison also indicated that the Department is considering whether to rescind the rule entirely, as it continues to evaluate the appropriate standards for distinguishing between employees and independent contractors. This review signals potential shifts in how worker status determinations will be handled moving forward.

Chris Spear, President of the American Trucking Associations, expressed support for this move, stating it is “a vital step toward reinstating the common-sense standards established during President Trump’s first term, which safeguarded individuals’ freedom to select work arrangements that best fit their needs and goals.” He emphasized that for nearly a century, the trucking industry has relied on independent contractors, with courts repeatedly affirming their critical role in the economy.