DOL Suspends Enforcement of 2024 Independent Contractor Rule Amid Review 

The U.S. Department of Labor (DOL) has announced it has ceased enforcing its controversial 2024 independent contractor rule, effective March 11, 2024, despite earlier speculation that President Donald Trump’s appointee, Lori Chavez-DeRemer, might resist such a move. 

The 2024 rule, enacted under the Biden administration, tightened criteria for classifying workers as independent contractors under the Fair Labor Standards Act, making it harder for companies to avoid employee status. It replaced Trump-era regulations that had eased such classifications, drawing strong opposition from the financial services industry, including the Financial Services Institute. 

The DOL issued a field assistance bulletin directing staff to stop applying the 2024 rule in enforcement actions while the agency reviews its future, including potential rescission. The rule faces multiple federal court challenges, prompting the DOL’s reconsideration. 

DOL Acting Administrator Donald Harrison III stated in the bulletin, “The Department has taken the position in those lawsuits that it is reconsidering the 2024 Rule, including whether to rescind the regulation.” 

Lori Chavez-DeRemer, confirmed as Labor Secretary in March 2025, was initially viewed with uncertainty due to her prior support for California’s PRO Act, which restricted independent contractor roles for professionals like financial advisors and journalists. However, she has not opposed the pause on the 2024 rule, aligning with the DOL’s current stance.