Attention Employers: U.S. Department of Labor’s Proposed Independent Contractor Rule Returns to Pro-business “Economic” Reality Test

On February 26, 2026, the U.S. Department of Labor (DOL) issued a proposed rule for determining employee or independent contractor status under the Fair Labor Standards Act (FLSA).  If adopted, the proposed rule would rescind the DOL’s 2024 Rule—which utilizes a complex six-factor “totality of the circumstances” test—and replace it with an “economic reality” test […]

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