Some employers that rely on staffing arrangements, franchise relationships, or independent contractors may see meaningful shifts in federal labor policy because of a pair of federal agency rulemaking announcements released in February 2026. Specifically, the National Labor Relations Board (NLRB) published a final rule governing joint-employer status on Feb. 27, 2026. One day earlier, the U.S. Department of Labor’s (DOL) Wage and Hour Division announced a proposed rule revising the DOL’s standard for classifying independent contractors under certain federal employment laws, such as the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA). Both actions represent a retreat from policies adopted during former President Joe Biden’s administration and a return toward standards associated with President Donald Trump’s first administration’s labor policy approach.
Two businesses may be considered joint employers under the National Labor Relations Act (NLRA) if they share or codetermine essential terms and conditions of employment for the same group of workers. That determination may carry consequences, including potential unfair labor practice liability and collective bargaining obligations. The NLRB’s joint-employer standard has shifted repeatedly over the past decade. In Browning-Ferris Industries, 262 NLRB No. 186 (2015), the Obama-era NLRB broadened the standard, holding that indirect control...
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