DOL outlines fall priorities: Wage rules, independent contractors, and more

The U.S. Department of Labor (DOL) has released its latest regulatory agenda, highlighting a series of proposed and pending rules that could significantly affect employers in the coming year.

While not all rules are guaranteed to move forward, the agenda offers insight into the department’s enforcement and policy priorities heading into the fall and beyond.

Key areas

Here are the key areas of focus on the DOL’s agenda:

• Overtime rulemaking: The agency plans to finalize changes to the “white collar” overtime exemption rule under the Fair Labor Standards Act (FLSA). The proposed update would raise the salary threshold for exemption, expanding overtime eligibility for millions of workers. Legal challenges are expected.
• Independent contractor classification: The Biden-era rule narrowing the definition of independent contractors is expected to remain in place, despite pending lawsuits. The DOL continues to emphasize economic dependence and totality-of-the-circumstances analysis over bright-line tests.
• Joint-employer status: After legal setbacks for the National Labor Relations Board (NLRB), the DOL may revisit its own joint-employer rule under the FLSA, potentially favoring narrower interpretations based on direct control.
• Prevailing wage updates: The agency is also focused on implementing its final rule modernizing Davis-Bacon prevailing wage regulations, which took effect in October 2023.

Other priorities in the pipeline

Several other items appear on the long-term agenda, indicating continued attention but less immediate action:

FMLA revisions: The DOL is exploring updates to Family and Medical Leave Act regulations, possibly addressing areas of confusion around eligibility, intermittent leave, and notice requirements.

Workplace wellness programs: Rules clarifying the interaction between wellness incentives and nondiscrimination laws under the Affordable Care Act remain on the radar, though no new proposal has been released.

Heat illness prevention: The Occupational Safety and Health Administration (OSHA) is working on a national heat standard for indoor and outdoor workplaces, with stakeholder input ongoing.

Why the agenda matters

While the agenda isn’t binding, it provides a clear window into the department’s policy goals. For HR and employment professionals, now is the time to:

• Monitor the finalization of key rules, including overtime eligibility and joint-employer status.
• Prepare documentation and audit procedures for worker classification under FLSA guidance.
• Stay engaged in public comment periods where applicable, especially on rules that may reshape compliance burdens or legal exposure.

Labor policies remain in flux, especially in an election year. Employers that track these developments closely and prepare for multiple outcomes will be best positioned to stay ahead of risk.