March 11 marked the effective date of the U.S. Department of Labor’s (DOL) final rule (2024 IC Rule) for analyzing whether a worker should be classified as an employee or independent contractor under the Fair Labor Standards Act (FLSA). The 2024 IC Rule sets out a six-factor “economic reality” test.

While the DOL rule took effect as scheduled (in contrast to the NLRB joint employer rule that was struck down by a Texas federal court on March 8), multiple lawsuits stand in its path and lawmakers in both chambers of Congress are challenging the 2024 IC Rule under the Congressional Review Act. And if the 2024 IC Rule can run the gauntlet of congressional challenge and at least four lawsuits seeking its demise, a U.S. Supreme Court decision upending the Chevron doctrine of deference to administrative agency interpretations of statutes may be waiting for it at the end of the court’s 2023-24 term.

A Brief History of DOL Attempts to Analyze Independent Contractor Status