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ARTICLE · 06 MARCH 2026

DOL Signals Employer-Friendly Shift In Contractor Classification

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On February 26, 2026, the U.S. Department of Labor ("DOL") announced a proposed rule that would rescind the 2024 Biden-era independent contractor regulation (the "2024 Rule") and replace it with a revised...

United StatesEmployment and HR
Stephen E. Fox
Stephen E. Fox
Jonathan E Clark
Jonathan E Clark
Jennifer Risberg
Jennifer Risberg
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On February 26, 2026, the U.S. Department of Labor (“DOL”) announced a proposed rule that would rescind the 2024 Biden-era independent contractor regulation (the “2024 Rule”) and replace it with a revised “economic reality” framework (“Proposed Rule”). If finalized, the Proposed Rule would mark a significant shift in federal worker classification standards and likely make it easier for employers to classify certain workers as independent contractors under federal law. 

Notably, the Proposed Rule would apply not only to the Fair Labor Standards Act (“FLSA”), but also to the Family and Medical Leave Act (“FMLA”) and the Migrant and Seasonal Agricultural Worker Protection Act (“MSAWPA”)—both of which use the FLSA’s definition of “employee.”

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