DOL Reverts to 2008 Worker Classification Standard

The U.S. Department of Labor’s Wage and Hour Division (WHD) issued Field Assistance Bulletin 2025-1, announcing that it will no longer be using the 2024 Biden-era standard for evaluating independent contractor status. WHD announced that it will return to the “economic realities” test that was developed back in 2008. That test involves evaluation of seven different factors when classifying workers as independent contractors or employees. Those factors include (1) the degree of control the employer exercises over the worker’s work, (2) the permanence of the working relationship, (3) investment in tools or equipment, (4) the amount of the worker’s judgement and initiative required for their success, (5) the worker’s opportunity for profit or loss, (6) whether the work being performed is integral to the business and (7) the level of independent business organization and operation. For more information on the standard for classifying workers, visit Tax Facts Online. Read More: Link to Q8723. Note: Q is updated.