网曝吃瓜

Recently, two federal agencies announced rule changes that should lessen the risk of worker misclassification. On February 26, 2026, the U.S. Department of Labor (DOL) and the National Labor Relations Board (NLRB) took major steps to roll back Biden-era employment and labor regulations and largely reinstate worker classification rules promulgated in the first Trump administration.

NLRB Announces New Joint Employer Rule

On February 26^, 2026, the National Labor Relations Board (NLRB) announced that it was officially returning to a pro-business joint-employer standard, replacing the Biden Administration鈥檚 joint-employer rule.

Background

The Biden Administration鈥檚 2023 joint employer rule significantly expanded when employers would be considered joint employers under the National Labor Relations Act (NLRA). Instead of focusing on the actual exercise of control an employer exerted over a worker, the 2023 rule treated employers as joint employers based on indirect or unexercised control. 网曝吃瓜 opposed the 2023 joint employer standard. A legal challenge was filed against the standard, and in 2024, a federal court declared it unlawful.

The New Joint Employer Standard

Under the new standard, an employer will be considered a joint employer only if it 鈥渟hares or codetermines the employees鈥� essential terms and conditions of employment鈥� with another employer. This determination looks to whether an employer 鈥減osses[es] and exercise[s] such substantial direct and immediate control over one or more essential terms or conditions鈥� of employment. The 鈥渆ssential terms or conditions鈥� of employment include wages, benefits, hours of work, hiring, discharge, discipline, supervision, and direction. For each term and condition of employment, the inquiry focuses on an employer鈥檚 actual control and exercise of that control.

This new standard will offer greater clarity and predictability for employers. To better understand the new standard, see .

DOL Proposes New Independent Contractor Rule

On February 26, 2026, the U.S. Department of Labor (DOL) a proposed rule clarifying the independent contractor test under the Fair Labor Standards Act (FLSA), the federal wage-and-hour law. DOL鈥檚 proposal benefits both employers and independent contractors by enhancing clarity and flexibility, while lowering the risk of misclassification and financial penalties.

Background

In 2024, the Biden Administration revised the independent contractor analysis used to determine liability under the FLSA. 网曝吃瓜 vigorously opposed the Biden Administration鈥檚 attempt to restrict small businesses鈥� use of independent contractors. We sued to stop the 2024 independent contractor rule from taking effect.

DOL鈥檚 New Independent Contractor Rule

DOL鈥檚 proposed rule, if finalized, would refocus the independent contractor analysis on whether a worker is economically dependent on the employer. Employers should evaluate five factors in this analysis, with the first two being the 鈥渃ore,鈥� or most important, factors.

1. The Nature and Degree of Control Over the Work
   • Independent contractor 鈥� If the individual exercises substantial control over key aspects of performance, such as work scheduling, project selection, and ability to work for other employers.
   • Employee 鈥� If the employer controls the worker鈥檚 schedule, projects, or ability to work for others.

听

2. Individual鈥檚 Opportunity for Profit or Loss
   • Independent Contractor 鈥� If the individual can earn profits or incur losses based on their own exercise of initiative, like managerial skill or business acumen, or management of their own business capital.
   • Employee 鈥� If the individual cannot affect their earnings or can only do so by working faster or more hours.

听

3. Amount of Skill Required
   • Independent Contractor 鈥� If work requires specialized training or skill that employer does not provide.
   • Employee 鈥� If no specialized skill or training is required, or worker is dependent on employer to provide training necessary for the job.

听

4. Degree of Permanence of Working Relationship Between Individual and Employer
   • Independent Contractor 鈥� If the work is definite in duration or sporadic.
   • Employee 鈥� If the work is indefinite in duration or continuous.

听

5. Whether the Work is Part of an Integrated Unit of Production
   • Independent Contractor 鈥� If the worker鈥檚 contribution is segregable from the employer鈥檚 production process.
   • Employee 鈥� If the worker鈥檚 contribution is a component of the production process for the employer鈥檚 good or service.

听
For the first time, DOL鈥檚 proposed rule also seeks to apply the same classification analysis to other federal laws beyond the FLSA, such as the Family and Medical Leave Act (FMLA).

For more information, you can read the or download 网曝吃瓜鈥檚 Guide to Independent Contractors.

If you have questions on these classification updates, contact the 网曝吃瓜 Legal Center at info@nfib.org.

March 9, 2026