DOL Signals Employer-Friendly Shift in Contractor Classification

On February 26, 2026, the U.S. Department of Labor (“DOL”) announced a proposed rule that would rescind the 2024 Biden-era independent contractor regulation (the “2024 Rule”) and replace it with a revised “economic reality” framework (“Proposed Rule”). If finalized, the Proposed Rule would mark a significant shift in federal worker classification standards and likely make it easier for employers to classify certain workers as independent contractors under federal law.... By: Sheppard Mullin Richter & Hampton LLP