June 2025
At Panther Workforce Solutions (PWS), keeping our clients informed about regulatory updates that affect contingent workforce management is a priority. A significant development occurred on May 1, 2025, when the U.S. Department of Labor (DOL) announced it would pause enforcement of the 2024 Independent Contractor Final Rule. This decision impacts how organizations classify independent contractors under the Fair Labor Standards Act (FLSA).
What Has Changed?
2024 Final Rule (Now Paused)
The now-paused rule, which took effect on March 11, 2024, applied an “economic reality” test using six equally weighted factors. This stricter interpretation increased the likelihood that many workers would be classified as employees, heightening the risk of misclassification.
Current Guidance (As of May 2025)
- Reverts to more flexible 2019 DOL guidance
- Reduces federal enforcement risk
- Existing independent contractor (IC) relationships remain valid
- Best practices and documentation are still critical—especially in high-regulation states such as California, Massachusetts, and New Jersey
Why This Matters to You
With this shift, clients can continue to benefit from flexible workforce models—particularly valuable in project-based sectors like tech, media, and consulting. However, proper classification remains essential to avoid legal and financial exposure.
At PWS, we help ensure that each engagement—whether through an independent contractor, temporary worker, or professional services arrangement—is appropriately classified and documented.
Worker Classification – At a Glance
- Independent Contractors: Self-employed, typically working under a Statement of Work (SOW) or Master Service Agreement (MSA). They provide their own insurance and tax ID, and are measured by outcomes, not hours.
- Temporary Workers and Payrolled Referrals: Hired for short-term projects, supervised by your internal team, with daily tasks defined by a job description.
Need help deciding the right classification? We offer detailed classification guidelines and hands-on support.
How Panther Workforce Solutions Can Help
PWS offers a comprehensive Managed Services Provider (MSP) solution, including:
- Vendor and Compliance Management
- Risk Mitigation
- Cost-Effective Talent Acquisition
- Talent Pool Development
- Reporting and Analytics
We are proud to be a Minority Owned and Certified business. Our robust and inclusive supply chain includes minority-owned, women-owned, and veteran-owned staffing firms. This helps clients achieve both their Tier 1 and Tier 2 supplier diversity spend goals while also driving inclusive hiring practices. Many candidates sourced through our diverse network transition to permanent roles—further supporting our clients’ DEI initiatives.
Questions?
Our dedicated team is here to support you—from classification guidance to program optimization. Reach out to your Panther Workforce Solutions Program Manager or contact our team to learn how we may be able to assist.