Investigators with the Department of Labor (DOL) will no longer apply the 2024 independent contractor rule in enforcement matters, the agency said on May 1.

The Biden-era rule, which took effect in March of last year, was expected to make it more difficult for businesses to classify workers as independent contractors rather than full-time employees. It rescinded a previous rule instituted during President Donald Trump’s first term, and restored a “multifactor economic reality test” for determining if an employee was an independent contractor.

The 2024 rule directed businesses to take into account a “totality of circumstances” when analyzing the employer-employee relationship, with no one factor taking precedence over another. The rule listed six factors to consider, including:

• the degree of permanence of the work relationship;
• the extent of employer control;
• the extent to which the work performed is an essential part of the employer’s business;
• the opportunity for profit or loss;
• investments by the worker and potential employer; and
• the worker’s skill and initiative.

This standard had been used by the courts for years to determine if workers were being classified correctly. The Trump-era rule directed employers to focus on just two core factors: a worker’s opportunity for profit or loss, and the nature and degree of the worker’s control over the work.

For more on what the DOL’s pronouncement means for misclassification enforcement, keep reading here.—CV

IBM abruptly announced major changes to its DEI practices last month, potentially upending decades of work. It’s the latest company to reverse course after public pressure from a conservative influencer and the Trump administration.

The changes. On April 10, news broke that the company was drastically changing its DEI programming via right-wing influencer Robby Starbuck. IBM also made an internal announcement to its employees. Among the various changes, IBM will reportedly no longer have a DEI department and eliminated its Diversity Council, which was established in the 1990s.

The changes don’t stop there, according to Starbuck. IBM has also ended its allyship campaign and allyship training, will no longer participate in the Human Rights Campaign (HRC) workplace index, and will not encourage employees to recognize preferred pronouns.

For more on IBM’s dramatic DEI reversal, keep reading here.—KP

Self-driving cars exist. They drive on the roadways alongside those with drivers whose hands remain locked at ten and two and their feet controlling the pedals. I certainly wouldn’t buy a self-driving car until it’s progressed enough that society agrees it will work well for me in the long run and that using the tech won’t inadvertently put others at risk.

Many HR and TA teams are approaching AI tech adoption in their firms in a similar manner. There are some who are further along in their deployment journey than others. (Waymo logged nearly two million miles before its tech was allowed on the highways.) Many HR and business leaders are waiting on governance frameworks, best practices, and ethical bumpers before they let AI operate at full speed inside their orgs.

For many clients of the global talent advisory firm AMS, many HR and TA teams have hit pause on broad AI adoption efforts, as the business community pioneers a new way of working with AI tools and infrastructure. As many of the ethical and compliance considerations remain unsettled, teams are waiting for industry standards to use as a guidepost, according to AMS CEO Gordon Stuart.

For more on one company’s efforts to draft its own AI ethical standards, keep reading here.—AD

Most total rewards plans cover the basics—but overlook the financial stress draining your workforce. Join us May 14 to explore how adding financial wellness to your benefits strategy can improve productivity, retention, and morale. Learn what you’re missing—and how to fix it. Register now.