Compliance May 8, 2025

DOL Stops Enforcing Biden-Era Independent Contractor Rule

Though the agency has not fully rescinded the 2024 rule, it indicated it will return to a simpler standard to define an independent worker.

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The DOL announced it would no longer enforce a rule finalized in 2024 under former President Joe Biden that made it more challenging to classify workers as independent contractors, according to Field Assistance Bulletin 2005-1. The rule created problems for some financial advisers who would prefer to utilize the “independent contractor” designation.

The announcement comes as the DOL’s rule—Employee or Independent Contractor Classification Under the Fair Labor Standards Act—faces multiple legal challenges, which prompted the department’s response that it will consider rescinding the rule.

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The Biden-era rule revised the definition of “independent contractor” to make it easier for workers to be classified as employees, rather than freelancers. It applied a six-factor test to determine a worker’s status. Employees, unlike independent contractors, are entitled under federal law to key protections such as minimum wage, overtime pay and workplace safety standards enforced by the Occupational Safety and Health Administration.

“The Department has taken the position in those lawsuits that it is reconsidering the 2024 Rule, including whether to rescind the regulation,” the bulletin stated. “Specifically, [the Wage and Hour Division] is currently reviewing and developing the appropriate standard for determining FLSA employee versus independent contractor status.”

In the meantime, the agency will revert to the pre-2024 enforcement framework. That guidance, outlined in a DOL fact sheet, requires that employers distinguish an employment relationship from a strictly contractual one based on an “economic reality” test, rather than “technical concepts.”

Though the DOL will no longer use the 2024 rule in its investigations, the rule remains in effect for litigation pursued by non-DOL parties, and employers’ responsibilities under the FLSA are unchanged, the guidance stated.

Compliance May 8, 2025

Bisignano Confirmed As Social Security Commissioner

Fiserv announced that Michael Lyons will replace Bisignano as the company’s CEO.

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The U.S. Senate confirmed American businessman Frank Bisignano as commissioner of the Social Security Administration in a 53 to 47, party–line vote Tuesday. His selection for the position had been announced in December.

The now former CEO of tech company Fiserv Inc., Bisignano’s term will expire in January 2031. Fiserv announced that Michael Lyons will replace Bisignano as the company’s CEO.

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In his new federal role, Bisignano will be tasked with delivering financial security for more than 70 million Americans. He will oversee operations, focusing on improving the agency’s service and ensuring the sustainability of the program, which is on track to run out of funds by 2035.

Bisignano joins the SSA during a pivotal period for the agency, which announced plans to downsize by cutting its staff count to 50,000 employees from about 57,000.

Republicans lauded his confirmation.

“Mr. Bisignano understands the importance of improving customer service at the Social Security Administration, including by bringing down wait times, ensuring that individuals can interact with the SSA in the way they prefer and improving the SSA’s payment accuracy,” said Senator Mike Crapo, R-Idaho, the chairman of the Senate Committee on Finance, in a statement. “I am confident Mr. Bisignano has the experience and vision to succeed in this mission, and look forward to working with him as Commissioner.”

Representative, Jason Smith, R-Missouri, chairman of the House Committee on Ways and Means, supported the confirmation as well.

“Mr. Bisignano’s decades of experience running large financial institutions will be a vital asset as the SSA works to modernize its agency to better serve its mission and be more responsive to beneficiaries all while protecting the program for current retirees and future generations,” Smith said in a statement.

Meanwhile, Democrats and Richard Fiesta, executive director of the Alliance for Retired Americans, said the confirmation would have a negative effect on the agency.

“[Republicans’] strategy here is death by a thousand cuts,” said Senator Ron Wyden, D-Oregon, the top Democrat on the Senate Finance Committee, in a statement released prior to the vote. “First they cut off customer service, then they close field offices and lay off staff. Then they farm out their customer service operations to private equity firms that employ AI chatbots and foreign call centers in an effort to plunge Americans into a maze of red tape designed to keep them from getting their earned benefits.

“Retirees who tuned into Frank Bisignano’s confirmation hearing hoping to hear that he planned on halting the chaos and destruction of the Social Security Administration caused by Elon Musk’s DOGE team were left disappointed,” Fiesta said in a statement.

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