The Department of Labor’s 2024 rule redefining independent contractor classification was set to reshape compliance frameworks for staffing models nationwide. While the enforcement has been delayed at the federal level, the rule’s ethos is still in play.

States can still enforce their own standards, and businesses still face the same classification risks: back taxes, unpaid overtime, and exposure to litigation.

Legal exposure doesn’t wait. If your compliance strategy is built around the assumption that federal delays equate to broad safety, you might not be prepared for nuanced regulations across jurisdictions in the future. The delay is a window. Not a shield. Now’s the time to audit, document, and realign.

𝗞𝗲𝘆 𝗰𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝗺𝗼𝘃𝗲𝘀 𝘄𝗵𝗶𝗹𝗲 𝘁𝗵𝗲 𝗿𝘂𝗹𝗲 𝗶𝘀 𝗱𝗲𝗹𝗮𝘆𝗲𝗱:

👉 Review multi-factor classification logic — not just contracts.
👉 Centralize documentation for work control, independence, and permanency.
👉 Preemptively model worker status under both economic reality and ABC tests.
👉 Build indemnification clauses into third-party contracts — or assume the liability.