On February 27, 2026, the U.S. Department of Labor (DOL) issued a proposed rule defining “independent contractor.”
On April 28, 2026, the Office of Advocacy (Advocacy) submitted public comments to DOL on the proposed rule.
Advocacy strongly supports the simplified definition of an independent contractor. The DOL’s new definition creates a clear and predictable standard that is essential to protecting small business viability, entrepreneurship, and worker choice in the modern workplace.
On October 29, 2025, Advocacy identified DOL’s 2024 independent contractor rule as one of Small Business’ Most Wanted Reforms, one of the priority agency rules for recission, withdrawal, or modification to reduce the regulatory burden on small businesses.
Advocacy applauds the DOL for rescinding the 2024 definition of independent contractor. DOL’s proposed rule addresses the concerns of small businesses by reducing regulatory burden and will result in cost savings for small businesses and independent contractors. Using data DOL data provided in the initial regulatory flexibility analysis (IRFA), Advocacy calculates that the change will save $2.0 billion in present value for small employers and independent contractors combined over the next 10 years when using a 7% discount rate, or $282 million per year.
Access our Regulatory Alerts to view and submit comments on important proposed regulations.