HR Tip: Compliance alert: independent contractor enforcement shift, EEO-1 reporting, and CMS WCMSA change

• The Department of Labor has paused enforcement of the Biden administration's independent contractor rule, which is being challenged in courts. Companies must now adhere to an earlier Trump administration standard on worker classification. The guidance does not explicitly state a change in regulation but "reflects how the department is allocating enforcement resources during the review of the 2024 rule." Employers should carefully review the details of the change and follow their state laws.
• Private employers with at least 100 employees and federal contractors with at least 50 employees have until June 24 to submit the EEO-1 report. The portal includes a message from the EEOC's new Acting Chair Andrea Lucas that warned employers not to use the data to take employment actions and reinforced earlier technical assistance that diversity, equity, or inclusion (DEI) practices that result in different treatment based on race, sex, or another protected characteristic can be unlawful discrimination.
• Effective July 17, 2025, CMS will no longer accept or review $0 Workers Compensation Medicare Set-Aside (WCMSA) submissions as part of its WCMSA review/approval process. After this date, entities may still use $0 WCMSAs, but they will need to independently determine whether they are appropriate based on the parameters outlined by CMS in Section 4.2 of the WCMSA Reference Guide. It is critical that documentation supporting the $0 set-aside decision be maintained.