Overview
- The Department of Labor proposed rescinding the 2024 independent‑contractor rule and largely readopting the 2021 economic‑reality framework.
- The proposal elevates two core factors—nature and degree of control over the work and a worker’s opportunity for profit or loss—above other guideposts such as skill, permanence, and integration into production.
- Draft text clarifies that meeting legal, safety, insurance, deadline, or quality requirements does not, by itself, show employer control, and it drops the 2024 rule’s relative‑investment comparison and “integral part” inquiry.
- The same classification analysis would apply for the first time across the FMLA and MSPA, with comments accepted from Feb. 27 through April 28, 2026.
- The DOL is not enforcing the 2024 rule in investigations, but it remains operative in private litigation for now; analysts expect reduced DOL reclassification risk and more contractor classifications in sectors like trucking, healthcare, retail, rideshare and delivery, though courts and stricter state tests still govern and related lawsuits remain stayed.