Overview
- The proposal, published Feb. 26–27, 2026, would rescind the 2024 six‑factor standard and reinstate an economic‑reality framework that gives greatest weight to control over the work and a worker’s opportunity for profit or loss.
- The draft rule treats skill, permanence, and whether the work is part of an integrated unit of production as secondary guideposts, and it emphasizes actual working practices over contract language.
- The notice opens a 60‑day public comment period through April 28, 2026, and the 2024 rule formally remains in effect until any final rule is issued.
- Courts may decline to defer to the DOL’s interpretation after the Supreme Court’s Loper Bright decision, so judges could continue applying their own tests in classification disputes.
- The proposal does not affect state standards such as ABC tests or other federal regimes like IRS or NLRB rules, prompting guidance for employers to review classifications across all applicable laws, especially in contractor‑heavy sectors.