ConDig (05-May-25)  The Associated Builders and Contractors (ABC) welcomed the US Department of Labor’s decision to pause enforcement of the Biden administration’s 2024 rule on independent contractor classification, a move the group says is a relief for construction firms that rely heavily on subcontracted labor.

The Department of Labor announced on May 1 that it will not apply the 2024 final rule in ongoing enforcement actions while the agency conducts a review. Instead, it will revert to established guidance outlined in Fact Sheet #13 and the reinstated 2019 Opinion Letter FLSA2019-6, which addresses classification standards, including in gig economy contexts.

“ABC is pleased that the U.S. Department of Labor will not apply the Biden administration’s 2024 final rule’s analysis in current enforcement matters,” said Kristen Swearingen, ABC’s vice president of government affairs. 

“This is welcome news for the many construction employers who depend on legitimate independent contractors to provide specialized skills, entrepreneurial opportunities and stability during fluctuations of work common to the industry.”

The 2024 rule, introduced by the Biden administration in an effort to crack down on worker misclassification, has faced heavy criticism from construction industry groups who argue the new framework is overly complex and hampers flexibility. ABC, alongside its Southeast Texas chapter and several other organizations, is currently challenging the rule in federal court.

Swearingen described the rule as “confusing, vague and unworkable,” warning that it risks depriving skilled tradespeople of vital work opportunities by restricting the use of independent contractor models.

“Instead of promoting much-needed economic growth and protecting legitimate independent contractors, the Biden administration’s 2024 final rule results in more confusion and expensive, time-consuming, unnecessary and often frivolous litigation,” she said. “ABC continues to support reinstatement of the Trump administration’s 2021 final rule, which simplified and clarified the factors for determining when a worker is an independent contractor versus an employee.”

The pause comes as construction employers continue to navigate tight labor markets and evolving regulatory pressures, with many seeing the independent contractor model as essential for maintaining project agility and specialized skill access.