The U.S. Department of Labor is proposing to replace the 2024 independent contractor rule with a version similar to the 2021 test. The focus would return to whether a worker is truly in business for themselves or economically dependent on the employer, with control over the work and opportunity for profit or loss as key factors.

For construction and roofing contractors, classification affects overtime, wages, recordkeeping, and potential FLSA liability. While this is only a proposed rule (comment period through April 28, 2026), it’s a good time to review subcontractor agreements and documentation.

Takeaway: The proposed rule may make contractor analysis more predictable, but employers must still follow state and tax standards and carefully document all subcontractor relationships.

View the proposed rule or submit a comment

Source: Cotney Consulting, P.A