DOL Reverses Course on Independent Contractor Rule for 2026! How Will Employers Adapt to the Change?

The Department of Labor (DOL) has changed its enforcement position on independent contractor classification under the Fair Labor Standards Act (FLSA). Its Wage and Hour Division (WHD) is no longer enforcing the most recent independent contractor rule, even though that rule technically remains in place.

Instead, investigators are applying the earlier economic reality test described in Fact Sheet #13 (2008) and Opinion Letter FLSA2019-6. That test asks whether a worker is economically dependent on the employer or in business for themselves, looking at factors such as the employer's control, how permanent the relationship is and the worker's chance of profit or loss.

This 60-minute webinar explains what the shift means for employers, the tools to use when classifying workers, how freelancers may respond and what legal developments to watch.

• Explain how the DOL's enforcement shift changes the classification landscape for employers
• Use the economic reality test to assess whether a worker is an employee or contractor
• Describe the six non-exhaustive factors in the independent contractor rule
• Identify the changes most likely to affect your organization
• Anticipate how freelancers and legal cases may respond to the change
• Apply practical methods to meet compliance expectations

• How the change in independent contractor vs employee enforcement affects employers
• Tools employers can use to classify their workers
• How freelancers may adapt when starting contracts with employers
• Which change will affect employers the most
• The rule's six non-exhaustive factors for the independent contractor analysis
• Legal cases expected to emerge from the change
• The most effective way to meet compliance expectations
• What the economic reality test is and how workers will be classified going forward

The return to the broad economic reality test is widely seen as more employer friendly and may lead more businesses to classify workers as contractors. No new legal duties have been imposed, but the DOL is awaiting ongoing litigation and considering rule changes.

Employers still need to judge how workers actually function in the job, not just what contracts, job descriptions or titles say. This session suits employers, business owners, leadership, compliance and HR professionals, and managers.

• All Employers
• Business Owners
• Company Leadership
• Compliance Professionals
• HR Professionals
• Managers/Supervisors 

Margie Faulk is a senior level human resources professional with over 15 years of HR management and compliance experience. A current Compliance Advisor for HR Compliance Solutions, LLC, Margie, has worked as an HR Compliance advisor for major corporations and small businesses in the small, large, private, public and Non-profit sectors.  Margie has provided small to large businesses with risk management strategies that protect companies and reduces potential workplace fines and penalties from violation of employment regulations. Margie is bilingual (Spanish) fluent and Bi-cultural.

Margie’s area of expertise includes Criminal Background Screening Policies and auditing, I-9 document correction and storage compliance, Immigration compliance, employee handbook development, policy development, sexual harassment investigations/certified training, SOX regulations, payroll compliance, compliance consulting, monitoring US-based federal, state and local regulations, employee relations issues, internal investigations, HR management, compliance consulting, internal/external audits, and performance management.
Margie is a speaker and accomplished trainer and has created and presented compliance seminars/webinars for over 16 US and International compliance institutes. Margie has testified as a compliance subject matter expert (SME) for several regulatory agencies and against regulatory agencies, thank goodness not on the same day. Margie offers compliance training to HR professionals, business owners, and leadership to ensure compliance with workplace and regulations. 
Margie’s unique training philosophy includes providing free customized tools for all attendees. These tools are customized and have been proven to be part an effective risk management strategy. Some of the customized tools include the I-9 Self Audit. Correction and Storage program, Ban the Box Decision Matrix Policy that Employers can provide in a dispute for allegations, Family Medical Leave Act (FMLA) Compliance Guide, Drug-Free Workplace Volatile Termination E-Book and other compliance program tools when attendees register and attend Margie’s trainings.
Margie holds professional human resources certification (PHR) from the HR Certification Institution (HRCI) and SHRM-CP certification from the Society for Human Resources Management. Margie is a member of the Society of Corporate Compliance & Ethics (SCCE).