U.S. Department of Labor Targets “Coercive” Contract Provisions

October 23, 2024

On October 15, 2024, the Solicitor of Labor of the U.S. Department of Labor (DOL) published a “Special Enforcement Report” declaring the DOL’s intention to oppose and deter seven contractual provisions that the DOL describes as “coercive.”

For those unfamiliar with the position, the Solicitor of Labor (SOL) serves as legal advisor to the DOL and is authorized to sue employers for violations of laws enforced by the DOL.

The contract provisions the SOL is targeting are as follows:

Provisions requiring workers to waive rights under wage and hour laws

Misclassification of workers as independent contractors

Indemnification provisions that shift liability to workers

“Loser pays” provisions

“Stay-or-pay” provisions

Confidentiality, non-disclosure, and non-disparagement provisions

Requirements that workers report safety concerns to their employer before contacting a government agency

Here is the crux of the provisions the SOL takes issue with and why:

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