WASHINGTON – The U.S. Department of Labor’s Wage and Hour Division today announced a proposed rule designed to help workers and employers better understand how to determine when a worker is an employee and when the worker may be classified as an independent contractor under the Fair Labor Standards Act and related federal laws. 

The proposed rule would rescind the department’s 2024 final rule addressing the classification of independent contractors and replace it with an analysis for employee classification similar to the one adopted by the department in 2021. Consistent with Supreme Court and federal circuit court precedent, the proposed rule would make it easier to properly differentiate between employees with the protections under the Fair Labor Standards Act and those workers who work as independent contractors. 

“The tens of millions of Americans who work as independent contractors are helping drive the Golden Age of the American economy,” said Secretary of Labor Lori Chavez-DeRemer. “The department’s proposed rule seeks to protect these workers’ entrepreneurial spirit and simplify compliance for American job creators navigating a modern workplace, all while maintaining robust protections for employees under the Fair Labor Standards Act.” 

The proposed rule would also apply the department’s streamlined analysis to the Family and Medical Leave Act and the Migrant and Seasonal Agricultural Worker Protection Act, both of which use the FLSA’s statutory definition of “employ.”

“The rule we are proposing today is not only based on long-standing legal principles used in federal courts across the country but also is aimed at ensuring that workers and employers know how to apply those principles predictably,” said Wage and Hour Division Administrator Andrew Rogers. “The department believes that streamlined regulations in line with Congress’s intent when it passed the Fair Labor Standards Act would improve compliance, reduce misclassification, and reduce costly litigation in an economic environment that needs flexibility and innovation.”

The analysis in the department’s proposed rule would: 

• Apply an “economic reality” test to determine whether a worker is in business for himself or herself as an independent contractor or is an employee economically dependent on an employer for work.
• Identify and explain two “core factors” to help determine if a worker is economically dependent on an employer for work or in business for him- or herself:
  • The nature and degree of control over the work.
  • The worker’s opportunity for profit or loss based on initiative and/or investment.
• Identify other factors to help determine a worker’s status as an employee or independent contractor, including the amount of skill required for the work, degree of permanence of the working relationship, and whether the work is part of an integrated unit of production.
• Advise that the actual practice of the worker and the potential employer is more relevant than what may be contractually or theoretically possible.
• Provide eight fact-specific examples applying the factors to real-life circumstances. 

The department encourages all interested parties to submit comments on the proposed rule, which has a 60-day comment period that closes at 11:59 p.m. ET on April 28, 2026. 

Workers and employers can call the Wage and Hour Division with questions and requests for compliance assistance at its toll-free helpline, 866-4US-WAGE (487-9243). The agency’s PAID program offers employers an opportunity to self-report and resolve potential minimum wage and overtime violations under the FLSA, as well as certain potential violations under the FMLA. 

Read the proposed rule. 

REDWOOD CITY, CA – The U.S. Department of Labor has reached a settlement agreement with the operator of a Little Caesars restaurant in Redwood City to pay $409,457 in back wages to 32 workers after an investigation found the employer failed to pay them the required minimum wage and overtime, in violation of federal wage law. 

The agreement follows an investigation by the department’s Wage and Hour Division that found franchise operator MG Fast Food Inc. violated minimum wage and overtime provisions of the Fair Labor Standards Act between May 2022 and May 2025. The division found that the employer failed to pay employees time and one-half overtime rates for all hours worked over 40 in a workweek but instead paid them straight time for those hours. In addition, the employer neglected to pay some employees for all hours worked, resulting in minimum wage violations.

The investigation also found FLSA recordkeeping violations, including discrepancies between timesheet totals and payroll records that affected overtime computations.

“All workers must be paid for every hour they work, including overtime premiums when they work more than 40 hours in a workweek,” said Wage and Hour Division Acting District Director Michael Eastwood in San Jose, California. “The Wage and Hour Division will continue to enforce federal law and help ensure workers receive the wages they earn.”

Employers and workers can call the division with questions and requests for compliance assistance at its toll-free helpline, 866-4US-WAGE (487-9243). Employers are encouraged to use the agency’s industry-specific compliance assistance toolkits to learn about their responsibilities under the laws enforced by the division. The agency’s PAID program offers employers an opportunity to self-report and resolve potential minimum wage and overtime violations under the FLSA, as well as certain potential violations under the Family and Medical Leave Act.

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Download the agency’s free timesheet app for iOS and Android devices to track hours and pay.

DENVER – A U.S. Department of Labor investigation of a full-service restaurant in Aurora found the employer violated federal child labor law and denied 19 chefs, kitchen staff, and other workers their earned overtime pay.

The department’s Wage and Hour Division found that Mt. Fuji Hibachi Inc., doing business as Mt. Fuji Sushi & Hibachi, violated child labor provisions of the Fair Labor Standards Act by allowing a 17-year-old to load a trash compactor, a hazardous task prohibited for workers under 18. Investigators also found the employer allowed 14 workers ages 14 and 15 to work later and longer hours than permitted by law. 

Under federal law, children ages 14 and 15 may not work later than 7 p.m. between the day after Labor Day and May 31, or after 9 p.m. from June 1 through Labor Day, and they cannot work more than eight hours per day on a non-school day.

The investigation also revealed the employer failed to pay time and one-half overtime rates to some employees for all hours worked over 40 in a workweek, instead paying them straight time. Mt. Fuji Hibachi also failed to pay some employees any wages for overtime hours worked. In all, overtime violations resulted in the recovery of $20,213 in back wages. 

“Restaurants have a clear legal duty to pay their employees for all hours worked, including overtime, and to provide a safe experience for young workers. The Wage and Hour Division is committed to protecting minors and ensuring employers meet their obligations under the Fair Labor Standards Act,” said Wage and Hour Division District Director David Skinner.

The employer has paid a $22,249 civil money penalty for the child labor violations in addition to the back wages.

The Department of Labor’s YouthRules initiative provides information about protections for young workers to youth, parents, employers, and educators. Through this initiative, the department and its partners promote work experiences that help prepare young workers to enter the workforce. The Wage and Hour Division has also published Seven Child Labor Best Practices for Employers to help employers comply with the law.

The agency’s PAID program offers employers an opportunity to self-report and resolve potential FLSA minimum wage and overtime violations, as well as certain potential violations under the Family and Medical Leave Act.

Learn more about the Wage and Hour Division, including a search tool that workers can use if they think they may be owed back wages collected by the division. Download the agency’s free timesheet app for iOS and Android devices to track hours and pay.

DENVER – The U.S. Department of Labor has recovered $61,568 in back wages for 11 workers after a federal investigation found a Denver restaurant denied the employees their full tips. 

The department’s Wage and Hour Division investigated Tommy’s Oriental Food Inc., which operates as Tommy’s Thai, and determined that the employer unlawfully kept all employee tips in violation of the Fair Labor Standards Act. The division also found the employer failed to record all hours worked by employees and did not properly display a required FLSA poster.

“Violations like these are all too common in the food service industry. Most restaurant employers are legally obligated to comply with the FLSA, which prohibits employers, including managers and supervisors, from keeping any portion of another’s tips,” said David Skinner, the Wage and Hour Division’s district director in Denver.

In addition to the back wages, the employer paid a $990 civil money penalty for the violations.

Workers and employers can call the Wage and Hour Division with questions and requests for compliance assistance at its toll-free helpline, 866-4US-WAGE (487-9243). Employers are encouraged to use the agency’s industry-specific compliance assistance toolkits to learn about their responsibilities under the laws enforced by the division. The agency’s PAID program offers employers an opportunity to self-report and resolve potential FLSA minimum wage and overtime violations, as well as certain potential violations under the Family and Medical Leave Act.

Learn more about the Wage and Hour Division, including a search tool that workers can use if they think they may be owed back wages collected by the division. Download the agency’s free timesheet app for iOS and Android devices to ensure hours and pay are accurate.

WASHINGTON – The U.S. Department of Labor’s Wage and Hour Division today announced the launch of several compliance assistance resources designed to promote greater compliance with federal labor laws and empower employers with the tools and knowledge they need to prevent violations.

The new tools include a compliance assistance webpage, a video series on the Family and Medical Leave Act, and revamped compliance assistance toolkits for various industries. In addition to encouraging proactive compliance among employers across the country, the resources also provide American businesses and workers with simple, straightforward guidance on understanding federal labor laws.

“The Wage and Hour Division is here to help employers make informed decisions about compliance so they can focus on running their businesses,” said Wage and Hour Administrator Andrew Rogers. “We know that most employers want to follow the law and do right by their employees, so we are eager to offer these new resources to help them understand their obligations. We encourage American businesses and workers to take advantage of the new toolkits and FMLA videos, which are easy to use and available on our website.”

Today’s announcement follows the recent relaunch of the department’s opinion letter program, which expands the department’s longstanding commitment to providing meaningful compliance assistance that helps workers, employers, and other stakeholders understand how federal labor laws apply in specific workplace situations.

The division also offers the Payroll Audit Independent Determination program known as PAID, to help employers self-report and resolve potential minimum wage and overtime violations under the Fair Labor Standards Act, and now certain potential violations under the FMLA.

Learn more about the Wage and Hour Division, including a search tool that workers can use if they think they may be owed back wages collected by the division. Employers and workers can call the division with questions and requests for compliance assistance through the agency’s toll-free helpline at 866-4US-WAGE (487-9243).

WASHINGTON − The U.S. Department of Labor today announced it will hold a free virtual seminar about the recently relaunched Payroll Audit Independent Determination program, which provides employers the opportunity to self-identify and resolve potential minimum wage, overtime, and leave violations under federal labor laws.

The seminar will include a panel discussion with regional and national experts from the department’s Wage and Hour Division and Office of the Solicitor. The experts will provide an overview of the PAID program and answer questions.

Who:               U.S. Department of Labor’s Wage and Hour Division

What:             Virtual seminar on the Payroll Audit Independent Determination program 

When:             Jan. 22, 2026, 1 p.m. to 2:30 p.m. CST     

Where:           Online event. Registration is required.

Originally launched in 2018, PAID has new enhancements, resources, and tools. The program has several of the same objectives as before, including resolving wage violations under the Fair Labor Standards Act, and now has expanded to include the Family and Medical Leave Act. PAID assists employers seeking to correct violations efficiently and without any litigation costs, improve compliance, and ensure employees receive FLSA back wages and FMLA remedies quickly.

WAUSAU, WI – A federal court has ordered a Wisconsin-based multicounty medical care partnership to pay $162,486 in back wages and liquidated damages to 68 case managers after a U.S. Department of Labor investigation found the employer did not pay case managers all wages owed for off-the-clock work, including overtime. 

Entered in the U.S. District Court for the Western District of Wisconsin, the consent judgment follows an investigation by the department’s Wage and Hour Division that found case managers employed by North Central Community Services Program and Affiliates – doing business as North Central Health Care – were working unrecorded hours. 

The department’s complaint alleged that between June 17, 2021, and June 16, 2023, North Central Health Care violated overtime and recordkeeping provisions of the Fair Labor Standards Act by failing to record and  pay case managers for all hours worked, including overtime. Under the FLSA, employers must pay nonexempt employees no less than time and one-half their regular rate of pay for all hours worked over 40 in a workweek. Employers are also required to record all compensable time worked each day, even time worked in small increments, in order to determine an employee’s regular rate of pay.

Entered on Dec. 4, 2025, the judgment requires North Central Health Care to pay $81,243 in back wages and an equal amount in liquidated damages to the 68 employees. Additionally, the employer is enjoined from future FLSA violations. 

Workers and employers can call the division with questions and requests for compliance assistance at its toll-free helpline, 866-4US-WAGE (487-9243). Employers are encouraged to use the agency’s industry-specific compliance assistance toolkits to learn about their responsibilities under the laws enforced by the division. 

The agency’s PAID program offers employers an opportunity to self-report and resolve potential FLSA minimum wage and overtime violations, as well as certain potential violations under the Family and Medical Leave Act.

Learn more about the Wage and Hour Division, including a search tool that workers can use if they think they may be owed back wages collected by the division. Download the agency’s free timesheet app for iOS and Android devices to track hours and pay.

BOISE, ID – The U.S. Department of Labor has entered into a settlement agreement with the owner of two Boise restaurants that failed to pay minimum wage and overtime to 388 workers, in violation of federal law. 

The department’s Wage and Hour Division recovered $366,261 in back wages for 388 workers after the division’s investigators found that Coa de Jima Inc., operating as Coa De Jima Restaurant, and LDC Investment Group Inc., operating as Barbacoa Grill, illegally included managers and supervisors in a mandatory tip pool. By including management, the tip pool was invalidated and the employer lost their tip credit, resulting in minimum wage and overtime violations of the Fair Labor Standards Act. 

The division also found that the employer deducted uniform costs from workers’ pay, reducing their pay below the required FLSA minimum wage requirements. In addition, the employer only paid employees overtime premiums after they exceeded 80 hours in a pay period, instead of the legally required time-and-one-half for hours worked over 40 in a workweek. 

“Wage violations, including employers diverting workers’ tips, are a major concern for restaurant industry workers,” said Wage and Hour Division District Director Katherine Walum in Portland, Oregon. “Federal law protects workers’ rights to be paid their earned wages in full. The Wage and Hour Division offers assistance to help restaurant employers comply with the law and avoid these kinds of violations.”

The division also found that the employer incorrectly classified some managers as overtime exempt, despite those individuals not meeting the duty requirements for the exemption. In addition to paying $366,261 in back wages, the settlement agreement requires Barbacoa Grill, Coa De Jima Restaurant, and owner Nikolai Castoro to pay a $47,282 civil money penalty for willful violations, assessed by the division. The investigation determined that the violations were willful because the employer showed a reckless disregard for the requirements of the FLSA.

The FLSA requires that most employees be paid overtime at time and one-half their regular rate of pay for hours worked over 40 in a workweek. Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division.

Employers and workers can call the division with questions and requests for compliance assistance at its toll-free helpline, 866-4US-WAGE (487-9243). Employers are encouraged to use the agency’s industry-specific compliance assistance toolkits to learn about their responsibilities under the laws enforced by the division. The agency’s PAID program offers employers an opportunity to self-report and resolve potential minimum wage and overtime violations under the Fair Labor Standards Act, as well as certain potential violations under the Family and Medical Leave Act.

Download the agency’s free timesheet app for iOS and Android devices to track hours and pay.

PHOENIX – The U.S. Department of Labor has obtained a consent judgment to recover $147,708 in back wages and liquidated damages for 61 roofers whose employer withheld overtime wages, in violation of federal law.

The department’s Wage and Hour Division determined the Phoenix-based Collum Roofing Inc. neglected to pay workers the legally required time and one-half their regular rate of pay for hours worked over 40 in a workweek. The employer paid hourly rates for some jobs and piece rates for others which resulted in straight-time pay for all hours worked but failed to maintain time records for work performed under the piece rate, which is necessary to determine the number of hours worked for purposes of minimum wage and overtime compliance.

The July 11, 2025, judgment in the U.S. District Court for the District of Arizona against Collum Roofing operators Robert and Michael Collum follows an investigation by the division that found the employer’s pay practices from May 7, 2021, through April 26, 2024, violated federal recordkeeping and overtime provisions of the Fair Labor Standards Act.

“Any employer found denying workers their required wages will be held accountable by the U.S. Department of Labor. In this instance, Collum Roofing’s actions were particularly egregious because the employer was aware of the wage law that required workers to be paid time-and-a-half for every hour worked over 40 in a workweek,” said Wage and Hour Division Assistant District Director Mitchell Wood in Phoenix. “Employers are legally responsible for ensuring they pay workers their FLSA wages and may face costly consequences when our investigators find they fail to uphold that obligation.” 

To address the willful nature of the violations, the division assessed Collum Roofing a $12,320 civil money penalty.

The FLSA requires that most employees in the U.S. be paid at least the federal minimum wage for all hours worked and overtime pay at not less than time and one-half their regular rate of pay for all hours worked over 40 in a workweek.

Workers and employers can call the Wage and Hour Division with questions and requests for compliance assistance at its toll-free helpline, 866-4US-WAGE (487-9243). Employers are encouraged to use the agency’s industry-specific compliance assistance toolkits to learn about their responsibilities under the laws enforced by the division. The agency’s PAID program offers employers an opportunity to self-report and resolve potential minimum wage and overtime violations under the Fair Labor Standards Act, as well as certain potential violations under the Family and Medical Leave Act.

Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Download the agency’s free timesheet app for Android and iOS devices to ensure hours and pay are accurate.

WASHINGTON – The U.S. Department of Labor’s Wage and Hour Division today announced it has recovered more than $259 million in back wages for nearly 177,000 employees nationwide – an average of $1,465 per worker – in fiscal year 2025, reaffirming its commitment to strengthening the American workforce.

“Under the leadership of President Trump and Labor Secretary Chavez-DeRemer, the Department is enforcing the laws fully and fairly to promote equal competition for all job creators while protecting the rights and earnings of American workers,” said Wage and Hour Division Administrator Andrew Rogers. 

In addition to recovering more back wages than in any year since 2019, the division also enhanced its compliance assistance efforts by providing new guidance and tools aimed at helping employers stay informed of their obligations. The agency created an improved compliance assistance hub, updated compliance videos on the Fair Labor Standards Act, and created a YouTube series on the Family and Medical Leave Act. The division also relaunched its opinion letter program and the Payroll Audit Independent Determination program, which offers employers an opportunity to self-report and resolve potential minimum wage and overtime violations under the FLSA, as well as certain potential violations under the FMLA.

Workers and employers can call the Wage and Hour Division with questions and requests for compliance assistance at its toll-free helpline, 866-4US-WAGE (487-9243). Employers are encouraged to use the agency’s industry-specific compliance assistance toolkits to learn about their responsibilities under the laws enforced by the division.

Learn more about the Wage and Hour Division, including a search tool that workers can use if they think they may be owed back wages collected by the division. Download the agency’s free timesheet app for iOS and Android devices to track hours and pay.