DOL Proposes New Independent Contractor Rule: What Employers Should Know
The Rules May Change Again: What the DOL’s Proposed Independent Contractor Shift Could Mean for Employers by Purciarele Group On February 26, 2026, the U.S. Department of Labor announced a proposed rule that could significantly change how workers are classified under federal wage and hour law. If finalized, this rule would: ➡️ Rescind the 2024 independent contractor rule ➡️ Replace it with a framework more aligned with the 2021 approach ➡️ Re-center classification decisions around the long-standing “economic reality” test Translation? Worker classification may soon become less checklist-driven and more judgment-based again. And for employers — especially small and mid-sized businesses — that means the risk landscape could shift. What May Actually Change? The proposed rule focuses on a fundamental question: Is the worker truly in business for themselves — or economically dependent on the company? To answer that, the DOL proposes emphasizing two core factors : 1. Control Who contr...