The Latest on Joint Employment & Worker Classification

Last week, there were decisions which will impact two federal labor laws for all businesses.  The results of these decisions will impact millions of workers.

Joint Employment

On February 23rd, the National Labor Relations Board (NLRB) re-determined the ongoing uncertainty about whether an employer may be deemed a ‘joint-employer’ under the National Labor Relations Act (NLRA).  In this announcement, the NLRB issued a final rule, which will shift to the 2015 Browning-Ferris Joint-Employer Standard.  This new employer-friendly rule will be effective immediately as of February 27, 2026.  This rule will replace the 2023 Biden-era regulations, however these regulations never took effect, as they were vacated by a District Court in Texas in 2024.  The new rule could impact millions of workers in the country.

For more information, visit: https://www.federalregister.gov/documents/2026/02/27/2026-03955/withdrawal-of-2023-standard-for-determining-joint-employer-status

Additionally, we hosted a webinar recently which discussed the future of joint employment in 2026. You can watch a recording by clicking here.

Independent Contractor Rule

On February 26, the US Department of Labor’s Wage & Hour Division announced a new proposed rule to clarify how employers can determine whether a worker is an employee or an independent contractor. 

In issuing the rule, it would replace the existing 2024 final rule, and replace it with a rule that is similar to the rule adopted in 2021. 

According to the Press Release, the proposed rule would:

  • Apply an “economic reality” test to determine whether a worker is in business for himself or herself as an independent contractor or is an employee economically dependent on an employer for work.
  • Identify and explain two “core factors” to help determine if a worker is economically dependent on an employer for work or in business for him- or herself:
    • The nature and degree of control over the work.
    • The worker’s opportunity for profit or loss based on initiative and/or investment.
  • Identify other factors to help determine a worker’s status as an employee or independent contractor, including the amount of skill required for the work, degree of permanence of the working relationship, and whether the work is part of an integrated unit of production.
  • Advise that the actual practice of the worker and the potential employer is more relevant than what may be contractually or theoretically possible.
  • Provide eight fact-specific examples applying the factors to real-life circumstances. 

For more information, visit: https://www.dol.gov/newsroom/releases/whd/whd20260226

For further guidance, we recommend that you consult directly with our attorneys, this way, we can provide you with a specific legally backed answer for your situation.