Labor Department Seeking Public Input on Independent Contractor Status Rulemaking

Labor
Published

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.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

IBS

Sep 02, 2025

NAHB International Builders’ Show Registration Opens for Final Time in Orlando

The National Association of Home Builders (NAHB) officially opened online registration and housing today for the 2026 NAHB International Builders’ Show@reg; (IBS), the largest annual light construction trade show in the world.

Economics

Sep 02, 2025

Single-Family Construction Down in Large Metros, Up in Rural Areas

In a sign of a soft housing market, single-family construction posted declines in nearly every geographic region in the second quarter of 2025, with the largest percentage drop of 3.8% occurring in large metro, suburban counties where most permit activity occurs. And while multifamily output also fell in large metro core counties, most other markets posted multifamily growth in the second quarter, according to the latest NAHB Home Building Geography Index (HGBI) for the second quarter of 2025 released today.

View all

Latest Economic News

Economics

Aug 29, 2025

Multifamily Absorption Rises in the Second Quarter

The percentage of new apartment units that were absorbed within three months after completion rose in the second quarter, according to the Census Bureau’s latest release of the Survey of Market Absorption of New Multifamily Units (SOMA).

Economics

Aug 28, 2025

Mortgage Rates Move Lower, Hitting 10-Month Low

Average mortgage rates in August continued their steady decline and are now at their lowest rate since last November.

Economics

Aug 27, 2025

Wood-Framed Home Share Increased in 2024

Wood framing continues to dominate the U.S. single-family home construction market, according to NAHB analysis of 2024 Census Bureau data.