Independent Contractor vs. Employee Trump Dept. of Labor Releases Proposed Rules

Overview:

On February 26, 2026. The Department of Labor released its highly anticipated proposal that should modernize the approach to determining whether a worker is an independent contractor or employee.

The proposal is now in the 60-day comment period so it is anticipated to become effective on or shortly after April 26, 2026. The proposed rule will rescind the department’s 2024 final rule and will make it easier to differentiate between employees and contractors.

However, it is important to note that the IRS has its own rules as do many states using the ABC test. So when using an independent contractor, you must be in compliance with these regulations as well as the one issued by the Department of Labor.

The new regulations are still using the “economic reality” test to determine whether the worker is in business for him-or herself or economically dependent on the employer for work. In addition, the new regulations identify two “core factors” to determine independent contractor status. They are: The degree of control the employer has over the work and the opportunity for the contractor to make a profit or loss. There are other factors to consider, but the core factors are given preference.

This webinar will give participants the information they need ensure independent contractors actually qualify as such. Failure to do your own analysis or misclassifying someone as an independent contractor who should be an employee can result in millions of dollar fines and back pay.

Why you should Attend: After going through this webinar, participants will know:

• The new rules the Department of Labor will use to determine employee vs. independent contractors
• The new guidelines on the safest way to use independent contractors
• What to include in independent contractor agreements

Areas Covered in the Session:

• Advantages of Using Independent Contractors
• The DOL Proposed Independent Contractor Regulations Explained
• Economic Reality
• IRS Common Law Rules Regarding Independent Contractors
• ABC Common Law Method
• Consequences of Misclassifying Employees as Independent Contractors
• Independent Contractor Agreements
• What’s Going to Get You in Trouble
• Action Items

Who Will Benefit:

• All Organizations in the United States involved in Interstate Commerce are covered by the Fair Labor Standards Act