Operations
Managing contractors, staffing agencies, franchise relationships and scheduling.
2 records
-
Comments due
Wage and Hour Division proposes to bring back the 2021 independent contractor test for federal wage, family leave and farmworker laws
- What changed
- The Department of Labor's Wage and Hour Division (WHD) proposes to replace the 2024 employee or independent contractor test in 29 Code of Federal Regulations (CFR) part 795 with the 2021 test, with a few changes. Under that test, control over the work and the worker's opportunity for profit or loss are core factors that usually carry the most weight. The same test would also apply under the Family and Medical Leave Act (FMLA) and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA).
- Who's affected
- Any business that engages independent contractors or decides how to classify workers under the Fair Labor Standards Act (FLSA), FMLA or MSPA. This includes agricultural employers, agricultural associations and farm labor contractors.
- What to do
- This proposal creates no new duties for employers, and nothing changes until a final rule is issued. You can comment by April 28, 2026. For now, WHD says it enforces under Field Assistance Bulletin No. 2025-1, and the 2024 rule remains in effect for private lawsuits.
-
Effective
National Labor Relations Board restores the 2020 joint employer rule after a court vacated the 2023 standard
- What changed
- The National Labor Relations Board (NLRB) put its 2020 joint employer rule back into the regulations. The 2023 rule that replaced it was struck down by a court before it ever took effect, so the standard employers were actually subject to does not change.
- Who's affected
- Private employers whose work is done by another company's employees, through staffing agencies, contractors or franchising, and the companies that employ those workers.
- What to do
- Nothing is required. If you rely on another company's workers, it is worth reviewing where you set or control their wages, hours, hiring, discipline or supervision.