Labor Department Seeking Public Input on Independent Contractor Status Rulemaking
The U.S. Department of Labor (DOL) recently announced plans to engage in a rulemaking related to determining the status of a worker as either an employee or independent contractor under the Fair Labor Standards Act (FLSA).
DOL wants to hear from workers and employers as it develops its proposal and will hold public forums this month to hear diverse perspectives from those who may be affected by employee or independent contractor classification.
- Employer Forum: June 24, 2:30–4:30 p.m. ET - RSVP here
- Worker Forum: June 29, 5–7 p.m. ET - RSVP here
NAHB supports enforcement of the rules on the classification of workers, but also supports clarification of those rules to improve compliance across all industries.
Consequently, NAHB supports the current rule adopted by DOL on Jan. 7, 2021, providing a sharper “economic reality” test to determine a worker’s status under the FLSA as an employee or an independent contractor.
NAHB believes this rule provides a clearer and simpler federal test for determining worker status for regulated employers and small businesses, including home builders and specialty trade contractors who are essential to the residential construction sector.
After the change in White House administrations, the DOL withdrew the rule on May 6, 2021, believing that it was inconsistent with the FLSA’s text and purpose.
But on March 14, 2022, a U.S. District Court stopped DOL’s move to delay and withdraw the new rule, delivering a victory for businesses. The court determined that the prior administration’s rule took effect as of its original effective date, March 8, 2021, and remains in effect until DOL issues a new rule through regular rulemaking processes.
The forums scheduled for late June are the first step in that rulemaking process. NAHB members are encouraged to participate in the forums and provide their perspectives on working as or hiring independent contractors.
Once a rule is proposed, DOL will have a notice and comment period for interested parties to provide feedback on the proposal. NAHB plans to submit comments.
Latest from NAHBNow
Oct 10, 2025
HBI Report Reveals Economic Impact of Labor Shortages on Housing ProductionThe 2025 Fall Labor Market Report reveals the true cost of too few workers in the residential construction industry, and provides insights on generational and demographic shifts in the workforce.
Oct 10, 2025
Fighting the Stigma of Mental Health in ConstructionFriday, Oct. 10, is World Mental Health Day, an annual observance from the World Health Organization to raise awareness of mental health issues around the world and to mobilize efforts in support of mental health.
Latest Economic News
Oct 10, 2025
Vinyl Surpasses Stucco as Most Used Principal Exterior Wall MaterialIn 2024, vinyl siding was the most used principal exterior wall material for homes started. It holds just over a quarter share of homes, slightly surpassing stucco for the first time since 2018.
Oct 09, 2025
Remodeling Market Sentiment Improves in Third QuarterIn the third quarter of 2025, the NAHB/Westlake Royal Remodeling Market Index (RMI) posted a reading of 60, up one point compared to the previous quarter. With the reading of 60, the RMI remains solidly in positive territory above 50, but lower than it had been at any time from 2021 through 2024.
Oct 08, 2025
Refinancing Activity Surges in SeptemberRefinancing activity surged in September, marking the largest monthly increase since the COVID-era of ultra-low interest rates. This increase followed mortgage rates dropping below 6.5% for the first time since October 2024 in anticipation of rate cuts that ultimately materialized.