The big picture: The Department of Labor (DOL) has proposed a new rule for 2026 that aims to redefine independent contractor status, potentially reclassifying many workers currently operating as contractors. This move seeks to provide clearer guidance on worker classification under the Fair Labor Standards Act (FLSA).

Why it matters: This proposed rule could significantly impact businesses relying on contingent workforces, forcing a re-evaluation of classification practices and potentially increasing labor costs and compliance burdens. Staffing firms and companies utilizing gig workers will face heightened scrutiny.

Between the lines:

• The rule likely reverts to an