The first half of 2026 has been productive at the U.S. Department of Labor (DOL). Here are the proposed changes that HR professionals should be tracking.
In late February, the DOL proposed rescinding the 2024 independent-contractor rule and reinstating an economic reality test like the 2021 standard. The analysis would place more weight on two factors: control of the work and opportunity for profit or loss, when evaluating whether workers are employees or independent contractors.
The comment period for this rule closed April 28, and the department is now reviewing submissions. Employers should review contractor relationships against the proposed rule and watch for the final version.
In April, the DOL proposed a single joint employer standard across the Fair Labor Standards Act, the Family and Medical Leave Act, and the Migrant and Seasonal Agricultural Worker Protection Act. This proposed rule would set separate tests for “vertical” and “horizontal” joint employment.
In particular, the vertical analysis asks whether an employer:
The comment period for this proposal closed on June 22. It would restore the approach that existed before the DOL rescinded its prior joint employer regulation in July 2021. Businesses that rely on staffing agencies, subcontractors, or franchise...
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