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February 2026 was a landmark month for the DOL, marked by the release of a highly anticipated proposed rule on independent contractor classification under the Fair Labor Standards Act (FLSA) . The proposed rule seeks to rescind the 2024 Biden administration rule and largely restore the 2021 Trump administration standard, which gives greater weight to two "core factors": the nature and degree of control over the work and the worker's opportunity for profit or loss . This rule is particularly significant for unskilled workers, who are often classified as independent contractors in industries like construction, landscaping, and delivery services.

If both core factors point to the same classification, the DOL stated there is a "substantial likelihood" that is the accurate classification . A clearer, more business-friendly standard could simplify the classification process for employers of unskilled labor, potentially reducing litigation. The proposed rule also extends this analysis to the FMLA and the Migrant and Seasonal Agricultural Worker Protection Act (MSPA), directly impacting agricultural and seasonal unskilled workers . A 60-day public comment period was opened, running through April 28, 2026, allowing stakeholders to provide feedback before a final rule is issued.