On January 15, 2025, the U.S. Supreme Court unanimously ruled in E.M.D. Sales, Inc. v. Carrera that employers must prove the applicability of exemptions under the Fair Labor Standards Act (FLSA) by a “preponderance of the evidence” (more likely than not), rejecting the higher “clear and convincing evidence” standard previously applied by the Fourth Circuit. The ruling resolves a circuit court split of authority.

On January 10, 2024, the Department of Labor (DOL) published a final rule (the Final Rule) regarding independent contractors under the Fair Labor Standards Act (FLSA). The Final Rule, which is effective March 11, 2024, replaces the 2021 rule and applies a “six-factor” test that does not give a predetermined weight to any of the economic reality factors, but rather looks at the individual’s activity as a whole in determining whether they are an independent contractor.

The federal government will officially shut down at 12:01 a.m. on Sunday, October 1, unless Congress agrees to pass a spending bill or a continuing resolution. The Biden administration yesterday began notifying federal employees that a shutdown is likely. This would be the fourth government shutdown in the past ten years, the longest of which lasted 34 days.