Workforce Reclassified: Understanding DOL’s “New” Independent Contractor Classification Rule

PilieroMazza – On February 26, 2026, the Department of Labor (DOL) announced a long-awaited proposed rule—again adjusting how the DOL views the appropriate classification of workers as “employees” or “independent contractors” under the Fair Labor Standards Act (FLSA). Consequences of worker misclassification can be significant not only for wages and benefits but also for various employment protections, for example, the Family and Medical Leave Act (FMLA). Therefore, employers should be aware of changes to the independent contractor rule and evaluate their policies and procedures regarding employee classification to avoid expensive misclassification penalties under both federal and state laws.

