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Labor Department Proposes New Rule on Independent Contractors

2/27/2026

Summary

Story summary

The U.S. Department of Labor proposed a rule on February 26, 2026 clarifying independent contractor classification under the Fair Labor Standards Act (FLSA).
The proposal rescinds the 2024 Biden administration rule and reinstates a modified version of the 2021 rule.
The rule emphasizes two core factors: control over work and opportunity for profit or loss.
A 60-day public comment period will follow publication in the Federal Register, closing April 28, 2026.

History

Historical Context

The Fair Labor Standards Act (FLSA), enacted on June 25, 1938, established minimum wage and overtime protections for workers, initially covering about 40% of the U.S. workforce. This legislation emerged from the New Deal reforms under President Franklin D. Roosevelt, aiming to address labor rights amid economic turmoil. Recent proposals by the Department of Labor continue to navigate the complexities of worker classification, impacting the gig economy significantly.

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Story summary

The U.S. Department of Labor proposed a rule on February 26, 2026 clarifying independent contractor classification under the Fair Labor Standards Act (FLSA).
The proposal rescinds the 2024 Biden administration rule and reinstates a modified version of the 2021 rule.
The rule emphasizes two core factors: control over work and opportunity for profit or loss.
A 60-day public comment period will follow publication in the Federal Register, closing April 28, 2026.

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