DOL Reverting to Previous Independent Contractor Rule
In 2024, the Biden DOL changed the requirements applying to “independent contractors,” making them more restrictive. On May 1, 2025, the Trump DOL revoked the Biden changes, returning the definition of independent contractor to the previous set of requirements, which had been established in 2008. The factors that are now to be considered are the following, which should make it easier to classify a worker as an independent contractor:
The extent to which the services are integral to the business.
The permanency of the relationship.
The worker’s investment in facilities and equipment.
The degree of control by the principal.
The worker’s opportunities for profit and loss.
The amount of initiative, judgment, or foresight required.
The degree of independent business organization and operation.
HOWEVER, the Biden criteria have NOT been officially rescinded, meaning that they can be used as the basis for a lawsuit, should a contractor be so inclined. Also, several states have their own regulations defining independent contractors, which are generally “tighter” than the federal standards. In those states, their regulations supersede the federal requirements.