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ARTICLE · 16 MARCH 2026

DOL Proposes To Reinstate "Core Factor" Analysis For Employee/Independent Contractor Classification

In late February 2026, the U.S. Department of Labor ("DOL") announced a proposed rule that would reinstate the first Trump Administration's "core factor"...

United StatesEmployment and HR

In late February 2026, the U.S. Department of Labor ("DOL") announced a proposed rule that would reinstate the first Trump Administration's "core factor" analysis for distinguishing between employees and independent contractors and rescinds the Biden Administration's 2024 worker classification framework. The two "core" factors emphasized in the proposed rule are:

  1. the worker's opportunity for profit and loss and
  2. the nature and degree of the worker's control over the work.

Accurately distinguishing between employees and independent contractors is crucial, as only employees are entitled to minimum wage and overtime protections under the Fair Labor Standards Act. If finalized, the DOL's proposed rule will ideally bring more clarity as to which workers can be properly classified as independent contractors.

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