A federal district court ruled recently that the Biden Administration’s Labor Department acted unlawfully when it delayed and later repealed Trump-era regulations governing classification of workers as employees or independent contractors under the Fair Labor Standards Act (FLSA). The court’s ruling in Coalition for Workforce Innovation v. Walsh effectively reinstates the Trump Administration’s regulatory reforms retroactively.
Importantly, the court’s decision is based on failure by DOL to comply with applicable procedural requirements, leaving the door open for the agency to try again to roll back the rule, or propose its own new rule as an alternative.
Members of the Center for Workplace Compliance (CWC) can read more here.