Employers employing independent contractors, temp workers, and other individuals potentially involved in joint employment relationships should be breathing a bit of a sigh of relief these days. On June 7, 2017, the U.S. Department of Labor (DOL) withdrew guidance that had been in place since as early as 2015. This guidance, developed under the Obama Administration, emphasized a broad interpretation of the Fair Labor Standards Act and supported prior efforts to crack down on employers potentially classifying employees and not complying with wage and hour laws. Not surprisingly, this withdrawal of the guidance creates a more employer-friendly environment.
Effectively, this should not change how employers operate. This withdrawal does not mean that employers can be lax in complying with federal wage laws. In announcing the withdrawal, the DOL made it a point to state that it will continue to fully and fairly enforce all laws within its jurisdiction. This withdrawal, however, potentially signals that the Trump Administration will be focusing its enforcement on other areas of the law. MRR will continue to monitor the DOL for any new guidance on these subjects.