Midyear review of WHD’s regulatory changes reveals transformed landscape

The first half of 2025 has ushered in a transformative period for the U.S. Department of Labor (DOL), marked by sweeping deregulatory initiatives, judicial reversals, and structural realignments. Under the Trump administration’s renewed focus on reducing regulatory burdens, the Wage and Hour Division (WHD) has recalibrated its enforcement posture, while broader agency actions signal a proclivity toward redefining federal labor policy. This article outlines the most significant wage and hour regulatory developments.

Independent contractor rule abandoned

On May 1, 2025, the DOL issued a field assistance bulletin (FAB) directing WHD investigators to disregard the 2024 final rule on independent contractor classification when conducting Fair Labor Standards Act (FLSA) investigations. Instead, investigators are instructed to apply the prior guidance outlined in Fact Sheet 13 (July 2008) and Opinion Letter FLSA 2019-6.

While the 2024 rule—“Employee or Independent Contractor Classification Under the FLSA”—remains in effect for private litigation, the FAB clarifies that it will not guide WHD enforcement actions. The reinstated 2019 opinion letter applies to cases where no back wage payments or civil penalties have been made as of May 1, 2025.

This change signals a return to a more employer-friendly “economic reality” test for enforcement purposes. Employers should closely review the FAB and accompanying materials to understand how misclassification will be assessed in current investigations.

WHD opinion letter program relaunched