Independent Contractor Misclassification: Comparing Biden and Trump Approaches

One of the most common questions we hear from prospects and clients is whether independent contractor (IC) misclassification enforcement looks different under the Biden administration compared to the Trump administration. While every administration brings its own priorities, it’s helpful to break the issue down into two categories: regulatory efforts and enforcement.

1. Regulatory Efforts

The Biden and Trump administrations have taken different approaches to IC classification, especially in how broadly the issue is defined and which agencies are involved. 

Biden Administration: 

The Biden administration took a broad view of misclassification, framing it not only as a wage-and-hour issue under the U.S. Department of Labor (DOL) but also as a violation of several other laws. Misclassification was positioned as: 

• An unfair labor practice under the National Labor Relations Act (NLRB).
• An unfair restraint on trade (FTC).
• A consumer protection issue (CFPB). 
• Even a potential criminal matter under the Department of Justice (DOJ). 

Biden’s DOL also expanded memorandums of understanding (MOUs) with state agencies, allowing multiple agencies to share data and coordinate investigations. This meant that a single misclassification claim could trigger inquiries from multiple regulators at once. 

Trump Administration: 

The Trump administration has been more favorable toward IC models on the regulatory front. Several of the Biden-era efforts have been scaled back or deprioritized: 

• The CFPB has been largely dismantled.
• The NLRB currently lacks the members necessary to act decisively, and Trump’s acting NLRB general counsel rescinded many Biden-era position memos. While misclassification hasn’t been fully removed as an NLRA concern, it’s not a primary focus. 
• MOUs with states have not been expanded but have not been rescinded either. 

Perhaps most significantly, the Trump administration rescinded the Biden-era DOL IC rule and announced that a new IC rule is forthcoming, likely to be released in 2026. 

2. Enforcement

Despite changes in regulatory framing, the volume of misclassification claims has remained relatively consistent across administrations. 

• Under Obama, the DOL began publicizing its totals on wage and hour enforcement, including misclassification. 
• Trump’s first administration actually brought more misclassification claims than Obama’s last administration. 
• The Biden administration continued this trend, though some businesses report that the DOL took a more aggressive “guilty until proven innocent” stance in its investigations. 
• Trump’s second administration has continued many of the misclassification enforcement actions the Biden DOL had begun. 

Overall, staffing shortages at federal agencies have slowed the pace of some enforcement actions, but the DOL continues to pursue misclassification claims across industries regardless of administration. 

Key Takeaway 

The biggest differences between Biden and Trump administrations show up on the regulatory side, how broadly misclassification is defined and how many agencies are involved. But on the enforcement side, the DOL has continued to actively pursue misclassification claims under both administrations. 

For businesses that rely on independent contractors, the message is clear: regardless of who is in office, misclassification enforcement isn’t going away. The best protection is a proactive compliance strategy that can withstand scrutiny from multiple agencies and across different political climates.