What it means: The DOL 2024 independent contractor rule will not be enforced while it is under departmental review.

Our take: “The DOL’s 2024 rule intensified the stress and confusion of the classification process for small business owners and independent contractors,” said Beth Milito, Vice President and Executive Director of NFIB’s Small Business Legal Center.

The Department of Labor (DOL) announced that the 2024 independent contractor rule will not be enforced while it is under departmental review. The 2024 rule made the independent contractor classification process confusing for small businesses and made it more difficult for small businesses to hire and classify workers as independent contractors.

“NFIB is pleased that the DOL will not be using the 2024 rule in their enforcement efforts and will instead rely on a standard that provides small business owners and independent contractors the clarity they need and deserve,” said Beth Milito, Vice President and Executive Director of NFIB’s Small Business Legal Center.

NFIB opposed DOL’s 2024 final rule on independent contractors and joined a lawsuit in the U.S. District Court for the Eastern District of Texas challenging the rule. Enforcing further complications made it more difficult for small businesses to use independent contractors.

The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.