IEC’s advocacy team recently participated in a small business roundtable hosted by the U.S. Small Business Administration Office of Advocacy to discuss the U.S. Department of Labor’s proposed independent contractor (IC) rule issued February 6, 2026. The April 9 virtual session brought together stakeholders from across industries to provide feedback on how the current 2024 rule implemented by the Biden administration has hurt small businesses and freelancers, and how the current DOL’s proposed changes could offer relief and clarity.
The roundtable focused on the U.S. DOL’s effort to rescind and replace its 2024 IC rule, which many small businesses say created uncertainty by relying on a complex six-factor test that often tilted toward employee classification. In contrast, the proposed rule centers on a more streamlined “economic dependence” framework, emphasizing two primary factors: the level of control a worker has over their work and their opportunity for profit or loss. Additional considerations—such as skill, duration of work, and integration into a broader team—would serve as supporting guideposts rather than determinative factors.
Speaking on behalf of IEC, Jeremy Croft emphasized that workforce flexibility is essential to the health and growth of the electrical contracting industry. “Many IEC contractors got their start as independent contractors before building their own businesses, hiring employees, and contributing to their local economies,” Croft noted. “IEC invests heavily in apprenticeship and upskilling to meet the industry demand for 80,000 net new electricians a year, and a flexible workforce model is one of many entry points into the industry and helps meet industry labor and productivity needs.”
Also participating in the discussion, IEC lobbyist Ben Brubeck, principal and CEO of Government Affairs Solutions, reinforced the importance of regulatory clarity for construction employers broadly, including IEC members. Brubeck highlighted that while flexibility is critical, so too is a clear and enforceable standard. “Responsible contractors want to follow the law, but they need a rule that is understandable and predictable,” he said. “At the same time, clarity ensures that bad actors cannot hide behind confusion as an excuse for misclassification. A well-defined standard protects workers, supports fair competition, and holds violators accountable.”
Participants throughout the roundtable echoed concerns that the 2024 Biden DOL rule increased legal risk and compliance burdens for small businesses, particularly those without dedicated legal resources. The proposed rule, by contrast, is expected to reduce uncertainty and compliance costs, with federal estimates projecting billions in long-term savings for small businesses.
IEC’s participation in the roundtable reflects its ongoing advocacy for policies that support small businesses, merit shop contractors, and the broader construction industry. By promoting a balanced approach—one that preserves legitimate independent contractor relationships while ensuring clear rules and strong enforcement—IEC continues to champion workforce models that drive opportunity, entrepreneurship, and economic growth.
The SBA Office of Advocacy encouraged stakeholders to submit formal comments to the U.S. DOL ahead of the April 28 deadline, reinforcing that input from small businesses remains critical to shaping the final rule. IEC will be submitting comments and encourages IEC members to continue engaging in the process to ensure that the final policy reflects the real-world needs of the electrical contracting industry.
Learn more about IEC’s efforts on independent contracting regulatory reform.