DOL proposes contractor rule
The U.S. Department of Labor published a 2026 proposed rule revisiting the independent‑contractor test, leaning on economic‑dependence and degree‑of‑control factors. If finalized, it could change how you classify part‑time helpers or subcontractors when scaling a new electrical business. (jdsupra.com)
The Wage and Hour Division published a Notice of Proposed Rulemaking on Feb. 26–27, 2026 and set a public‑comment deadline of 11:59 p.m. Eastern on April 28, 2026 for Docket WHD–2026–0001. (dol.gov) The NPRM would formally rescind the DOL’s 2024 independent‑contractor rule and replace it with a modified version of the 2021 “economic reality” framework that the Department says is grounded in federal court precedent. (govinfo.gov) The proposal identifies two “core factors” that federal courts primarily consider—(1) the nature and degree of the worker’s control over the work and (2) the worker’s opportunity for profit or loss based on initiative and/or investment—and lists three additional factors (skill, permanence of relationship, and integration into production). (dol.gov) The NPRM directs that parties’ actual practices matter more than contractual labels and promises, and it includes eight illustrative examples showing how the economic‑reality factors would apply in real‑world scenarios. (dol.gov) Small‑business advocates and law firms have already flagged the proposal as a return to a more employer‑friendly test that would make it easier for firms to engage independent contractors—positions echoed by the SBA Office of Advocacy and multiple firm analyses. (advocacy.sba.gov) The DOL encourages electronic comments via Regulations.gov (search WHD–2026–0001) and lists a WHD help line at (866) 487‑9243 for interpretive questions about enforcement and the rulemaking docket. (govinfo.gov)
