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ARTICLE · 12 MARCH 2026

Worker Classification In Focus: DOL Proposes Rule On Independent Contractor Status

Ford Harrison LLP
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On February 26, 2026, the U.S. Department of Labor (DOL) issued a new proposed rule, entitled the "Employee or Independent Contractor Status Under the Fair Labor Standards Act, Family and Medical Leave Act...

United StatesEmployment and HR
Christopher C. Johnson
Christopher C. Johnson
Melany Hernandez
Melany Hernandez
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On February 26, 2026, the U.S. Department of Labor (DOL) issued a new proposed rule, entitled the "Employee or Independent Contractor Status Under the Fair Labor Standards Act, Family and Medical Leave Act, and Migrant and Seasonal Agricultural Worker Protection Act." The proposed rule would restore the DOL's 2021 independent contractor test issued during the first Trump administration and rescind the 2024 rule issued by the Biden administration.

If adopted, the proposed rule could have significant implications for businesses that rely on independent contractors, including those in home health care, transportation, agriculture, construction, and ridesharing. Unlike employees covered by the Fair Labor Standards Act (FLSA), independent contractors are not entitled to the minimum wage or overtime pay protections of the FLSA, nor are they required to be covered by unemployment or workers' compensation insurance.

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