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ARTICLE · 10 MARCH 2026

U.S. DOL Proposes New Independent Contractor Classification Rule

Reinhart, Boerner, Van Deuren SC
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Whether a worker is properly classified as an "employee" or an "independent contractor" has serious consequences under several laws, including the Fair Labor Standards Act (the FLSA).

United StatesEmployment and HR
Lynn Stathas
Lynn Stathas
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Whether a worker is properly classified as an "employee" or an "independent contractor" has serious consequences under several laws, including the Fair Labor Standards Act (the FLSA). Employees must be paid consistent with the wage and hour requirements of the FLSA and state laws. An employer who misclassifies an employee as an independent contractor might be liable for unpaid wages, overtime pay, benefits and, potentially, for statutory penalties and attorneys' fees.

The U.S. Department of Labor (DOL) recently issued a proposed rule establishing a new test to make it easier for employers to properly classify workers. The proposed rule would replace the DOL rule implemented in 2024 and restore a framework like the one adopted by the DOL in 2021.

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