DOL Proposes FLSA Independent Contractor Classification Reset: Risk, Litigation, and the DOL’s New 2026 Proposal

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HRCI & SHRM Approved Webinar | CEUs = 1.0 Credit Hours

Overview:

HR leaders cannot confidently classify workers as employees or independent contractors because the federal standard keeps changing — and misclassification carries severe financial and legal consequences.

Employers lack a stable, defensible framework for classifying independent contractors in a rapidly shifting regulatory environment — creating financial risk, litigation exposure, and operational uncertainty.

US Department of Labor proposes rule clarifying employee, independent contractor status under federal wage and hour laws. The DOL proposes to rescind the 2024 rule and reinstate a weighted ‘core factors’ test — a shift that could significantly alter classification risk.

What will You Learn:

  • Understand how regulatory whiplash has created classification instability — and how to respond.
  • Clearly explain what is changing — and what is not — in the proposed DOL contractor rule.
  • Understand how the proposed rule formally aligns FMLA classification with the FLSA’s economic reality framework — and what that means for leave eligibility risk.
  • Understand how the weighted “core factors” test alters classification risk compared to the 2024 rule.
  • What exactly is the economic reality test under the DOL
  • What classifications of workers are permitted under IRS Rules
  • What is the common law rule, and how is it used to determine worker status
  • What are the three factors the IRS uses to determine worker status, and how to apply them correctly
  • Assess their current independent contractor arrangements under the proposed framework.
  • Identify where their greatest misclassification exposure exists.
  • Take concrete steps to create a defensible, documented classification process before the rule is finalized.
  • Understand how to submit meaningful comments that may shape the final rule.
  • Evaluate whether this proposed rule benefits your business
  • You will leave knowing exactly how to evaluate your 1099 workforce under the proposed rule — and what to fix before it becomes final.

Who Should Attend:

This webinar is essential for anyone responsible for worker classification, workforce flexibility, or compliance strategy:

  • Business owners and executives — If your company relies on independent contractors, gig workers, or consultants and you need to understand how the proposed rule could affect your business model and risk exposure.
  • HR professionals and HR business partners — If you are responsible for classifying workers, drafting contractor agreements, conducting audits, or advising leadership on compliance risk.
  • General counsel and compliance leaders — If you need to evaluate litigation exposure and understand how the proposed “core factors” test differs from the 2024 rule.
  • Payroll and workforce administration professionals — If worker classification impacts overtime eligibility, recordkeeping, tax reporting, or FMLA determinations.
  • Staffing, franchise, and contractor-heavy employers — If your organization depends on flexible workforce structures and you need clarity on what the DOL’s proposed rule means for your operations.
  • Managers and operational leaders who engage contractors directly — If you supervise or work alongside independent contractors and need to understand how control, profit opportunity, and actual practice affect classification status.

SHRM -

CEU Services is recognized by SHRM to offer Professional Development Credits (PDCs) for the SHRM-CPSM or SHRM-SCPSM. This program is valid for 1.0 PDCs for the SHRM-CPSM or SHRM-SCPSM. For more information about certification or recertification, please visit - portal.shrm.org.

HRCI -

This webinar has been approved for 1.0 HR (General) re-certification credit hours toward California, GPHR, HRBP, HRMP, PHR, and SPHR recertification through the HR Certification Institute.

The use of this seal is not an endorsement by the HR Certification Institute of the quality of the activity. It means that this activity has met the HR Certification Institute’s criteria to be pre-approved for re-certification credit.

Author Images
Suzanne Lucas
Evil HR Lady

Suzanne Lucas spent 10 years in corporate HR where she hired, fired, managed the numbers, and double-checked with the lawyers. She left the corporate world to advise people and companies on how to have the best Human Resources departments possible. Suzanne integrates best practices with innovative ideas and humor, including using improv comedy as a tool for leadership development. Suzanne’s writings have been published at CBS News, Inc. Magazine, Reader’s Digest, and many other sites. She’s been named a top influencer in HR. You can read her archives at EvilHRLady.org or check out her Tedx Talk: Forget Talent and Get to Work.