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B-335873 Jan 24, 2024 1 (2024-01-24)

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                     U.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington, DC 20548


B-335873


January 24, 2024

The Honorable Bernard Sanders
Chairman
The Honorable Bill Cassidy
Ranking Member
Committee on Health, Education, Labor, and Pensions
United States Senate

The Honorable Virginia Foxx
Chairwoman
The Honorable Bobby Scott
Ranking Member
Committee on Education and the Workforce
House of Representatives

Subject: Department of Labor, Wage and Hour Division: Employee or Independent Contractor
        Classification Under the Fair Labor Standards Act

Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule
promulgated by the Department of Labor, Wage and Hour Division (DOL) entitled Employee or
Independent Contractor Classification Under the Fair Labor Standards Act (RIN: 1235-AA43).
We  received the rule on January 10, 2024. It was published in the Federal Register as a final
rule on January 10, 2024. 89 Fed. Reg. 1638. The effective date is March 11, 2024.

The final rule, according to DOL, modifies regulations to replace the analysis for determining
employee or independent contractor classification under the Fair Labor Standards Act, Pub. L.
No. 75-718, 52 Stat. 1060 (June 25, 1938). DOL stated that the analysis in the modified
regulations is more consistent with judicial precedent and the Act's text and purpose.

Enclosed is our assessment of DOL's compliance with the procedural steps required by
section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule. If you have any questions
about this report or wish to contact GAO officials responsible for the evaluation work relating to
the subject matter of the rule, please contact Shari Brewster, Assistant General Counsel, at
(202) 512-6398.







Shirley A. Jones
Managing Associate General Counsel

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