Policy Week in Review – May 2025

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U.S. DOL Pauses Enforcement of Biden-era Independent Contractor Rule 

On April 29, the U.S. Department of Labor issued a press release announcing new guidance on how to determine employee or independent contractor status, instructing agency investigators “not to apply the 2024 rule’s analysis in current enforcement matters” and to instead rely on previous guidance, including a reinstated 2019 opinion letter addressing classification as an independent contractor in virtual marketplace companies. Litigation remains pending in five different lawsuits challenging the 2024 rule. In the Coalition for Workplace Innovation case, the Department has a status report due on May 30 which could, possibly, indicate the Department’s plans to propose a new rule. For further Littler analysis, please read here

Litigation on U.S. DOL Overtime Rule is Stayed

On April 29, The U.S Court of Appeals for the Fifth Circuit granted the U.S. Department of Labor’s unopposed motion to stay the appeal pending the Department’s reconsideration of the Biden-era white collar overtime rule.  The case is in abeyance for 120 days. The court further ordered the Department to file status reports every 60 days.  An analysis of the rule – which was vacated on a nationwide basis by a federal district court in November 2024 – can be found here.

Chair Jordan’s Efforts to Weaken FTC’s Antitrust Regulatory Power 

As reported earlier this week, House Judiciary Committee Chair Jim Jordan (R-OH) has drafted an amendment via the congressional reconciliation bill writing process that would transfer all of FTC’s antitrust actions, employees, antitrust assets, and funding to the Antitrust Division of the Justice Department, thereby weakening the FTC’s key regulatory power.    

The First 100 Days of the Second Trump Administration

Littler’s Workplace Policy Institute provides an overview of President Trump’s first 100 days in office, highlighting executive actions in six areas impacting employers: immigration; inclusion, equity, and diversity; civil rights and the EEOC; labor law and the NLRB; DOL leadership; and higher education. In this article, each section includes links to more in-depth Littler articles.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations. Attorney Advertising.

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