The Labor Department has filed a new independent contractor rule at the Office of Management and Budget for review.
The Financial Services Institute, which has been battling Labor's 2024 independent contractor rule in court, said the group is "encouraged" that Labor has initiated new rulemaking.
"It is essential that any new rule preserves financial advisors' ability to choose the independent contractor model, operate their own businesses and serve their clients as they see best," FSI said in an emailed statement. "We look forward to reviewing the proposal once it is made public."
Labor filed the rule Jan. 7. OMB review can take up to 90 days.
FSI and its coalition partners sued Labor over the 2024 rule, asking the court to declare it invalid, prohibit the rule's implementation and allow the 2021 independent contractor rule to remain in effect. On April 29 of last year, the court granted Labor's motion for a temporary suspension to provide DOL sufficient time to "reconsider the regulation."
The 2024 rule went into effect in March 2024.
In May 2025, Labor issued a field assistance bulletin directing agency investigators not to enforce the Biden-era independent contractor rule, Employee or Independent Contractor Classification Under the Fair Labor Standards Act. FSI cheered the move.
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