Over the last several years, the U.S. Department of Labor has changed its guidance for how independent contractors should be defined several times. The changes often coincide with changes in presidential administrations, as the department seeks to make the definition encompass more or less of the workforce.
The latest change, proposed in February 2026, changes a 2024 rule by returning it to the 2021 standard. Specifically, the 2026 rule would specify that independent contractor status is dependent on two “core factors”:
- The nature and degree of control over the work.
- The worker’s opportunity for profit or loss based on initiative and/or investment.
While there are other proposed changes to the rule, these two factors are meant to clarify whether a person is dependent on an employer for work or in business for him- or herself (and therefore an independent contractor). Such tests can help federal courts make rulings considered more objective and credible and thus more likely to become longstanding precedent.
Independent Electrical Contractors, as a member of the Independent Worker Coalition, has submitted public comments supportive of the proposed rule change. IEC’s advocacy team also participated in an April roundtable hosted by the Small Business Administration to collect feedback on the proposed rule.
As of April 28, the comment period is now closed, and DOL is currently evaluating and responding to the submitted comments. More than 16,000 comments were submitted during the 60-day comment period.
The agency will not base its final decision on the number of positive vs. negative comments; rather, the determination is affected by several factors including the comments, scientific data, expert opinions, and facts accumulated during the rulemaking process.
In cases where rules undergo substantial revision following the comment period, they may be re-issued for public comment.
IEC will keep members apprised of the progress of this rule and notify members when the final rule is published or if there are additional public comment periods.