The U.S. Department of Labor (DOL) has issued new guidance on how it will enforce federal wage laws for gig workers, and it could significantly affect how companies classify workers—and how workers understand their rights.
On May 2, 2025, the DOL’s Wage and Hour Division (WHD) released two key updates:
- Field Assistance Bulletin No. 2025-1 (FAB 2025-1), outlining new enforcement guidance.
- Opinion Letter FLSA2025-2, which reinstates a 2019 interpretation about workers using “virtual marketplaces” like delivery or handyman apps.
Here’s what you need to know:
The Big Picture: Employee or Contractor?
Federal wage law (the Fair Labor Standards Act, or FLSA) only protects employees—not independent contractors. That means only employees are guaranteed minimum wage, overtime pay, and other protections. So the way a worker is classified really matters.
What’s New?
The DOL announced that it will no longer use the 2024 Rule to determine who is an employee. That rule is now tied up in court and being reconsidered.
Instead, the WHD will return to older guidance: a 2008 version of Fact Sheet #13 and the reinstated 2019 opinion letter (now FLSA2025-2). These emphasize the “economic reality” test—focusing on whether a worker is truly running their own business or is economically dependent on the company.
So, What Did the DOL Say About Gig Workers?
In FLSA2025-2, the Department analyzed a virtual platform that connects service providers (like food delivery drivers, movers, cleaners) with customers. It concluded that these workers are independent contractors, not employees, for reasons including the following:
- They set their own hours and prices.
- They use their own tools and cover their own costs.
- They aren’t trained, supervised, or monitored.
- They can work for competitors at the same time (“multi-apping”).
- They take on the risk of profit or loss like small business owners.
This means they are not entitled to federal wage and hour protections under the FLSA.
Why It Matters for Workers
If you work in the gig economy—or think your job has been misclassified—you should know:
- Independent contractor status can mean more flexibility, but fewer legal protections.
- If a company controls your schedule, work methods, or pay, you might be misclassified.
- The DOL has made clear it’s ready to enforce the FLSA based on the older, worker-friendly standards—not the newer, contested rule.
Need Legal Help?
Misclassification robs workers of wages and security. If you’re unsure about your status or believe you’ve been misclassified, our firm is here to help you evaluate your rights and fight for what you’re owed. Contact The Garner Firm, Ltd. today for a consultation regerding your potential worker misclassification or other potential wage and hour claim.