Compliance Corner

DOL independent contractor rule 2026: what payroll teams need to know

Written by Lauren DeBisschop | May 15, 2026 3:53:31 PM

Worker classification has never been a set-it-and-forget-it compliance question. In February 2026, the Department of Labor (DOL) proposed another significant shift — one that would change how employers determine whether a worker is an independent contractor or an employee under the FLSA, FMLA, and related federal statutes.

The comment period closed April 28, 2026. A final rule is expected late summer or fall 2026. For payroll teams, that window between "proposed" and "finalized" is not downtime. It's the right time to audit, document, and make sure your systems are ready.