DOL Revives Contractor Rules to Protect Workers Everywhere
Published Date: 2/27/2026
Proposed Rule
Summary
The Department of Labor wants to update how we decide if someone is an employee or an independent contractor for three big laws: the Fair Labor Standards Act, Family and Medical Leave Act, and Migrant and Seasonal Agricultural Worker Protection Act. They’re bringing back a 2021 rule with some tweaks and applying it to all three laws. If you’re a worker or a business, this could change your rights and responsibilities, so get ready to share your thoughts by April 28, 2026!
Analyzed Economic Effects
3 provisions identified: 0 benefits, 0 costs, 3 mixed.
Change to Employee/Contractor Test
The Department of Labor proposes to replace the current test in 29 CFR part 795 with the analysis the Department adopted in its January 7, 2021 final rule (effective March 8, 2021) with some changes. This proposal would change how courts and the agency decide whether someone is an employee or an independent contractor under the Fair Labor Standards Act, which can change workers' rights (like minimum wage, overtime, and recordkeeping) and businesses' legal responsibilities.
FMLA Employee Status Change
The Department proposes to apply the 2021 employee/independent contractor analysis to the Family and Medical Leave Act (FMLA). Because the FMLA uses the FLSA's definitions of "employ" and "employee," this could change whether someone counts as an "employee" eligible for unpaid, job-protected leave and continuation of group health insurance under the FMLA.
MSPA Classification Applied
The Department proposes to apply the same employee/independent contractor analysis to the Migrant and Seasonal Agricultural Worker Protection Act (MSPA). MSPA adopts the FLSA's definition of "employ," so this change could affect protections for migrant and seasonal agricultural workers like wages, housing, transportation, disclosures, recordkeeping, and farm labor contractor registration requirements.
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Key Dates
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