Michael Schmidt was quoted in a SHRM article discussing the U.S. Department of Labor’s (DOL) announcement that it will not enforce the 2024 independent contractor rule when applying the Fair Labor Standards Act (FLSA). The DOL will now revert to using the traditional economic realities test, reinstating a 2019 opinion letter (now FLSA 2025-2) which favors more contractor-friendly interpretations, particularly for gig economy roles.

Mike emphasized the ongoing regulatory instability, stating: “The rulemaking ping pong continues under another new federal administration.” He also warned of the high stakes of misclassification, which can lead to expensive class actions and retroactive liability for unpaid wages, overtime, and legal fees.

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