DOL Proposes New Independent Contractor Rule in 2026

On February 27, 2026, the U.S. Department of Labor (DOL) published a Notice of Proposed Rulemaking addressing how independent contractor status is determined under the Fair Labor Standards Act (FLSA). The proposed rule would remove the 2024 independent contractor rule and replace it with an updated framework — and for owner-operators and carriers in the trucking industry, understanding what this means is critical.

This is a proposed rule. It is not a final regulation. It does not immediately change the law.

However, it signals a potential shift in how worker classification may be analyzed at the federal level.

Below is a breakdown on what we know on this proposed rule, and what it could mean for the trucking industry.

What Has Been Proposed in the 2026 DOL Independent Contractor Rule?

The Department of Labor has proposed removing the 2024 independent contractor rule and replacing it with a framework that evaluates the entire working relationship using an “economic realities” analysis, similar to the 2021 standard.

Under this approach, the main question still remains: Is the worker economically dependent on the company, or operating an independent business?

The proposal places particular emphasis on two factors within the economic reality analysis:

1. The degree of control over the work

2. The worker’s opportunity for profit or loss

Other traditional economic reality factors may still be considered, but these two factors carry significant weight.

Here is what the 2026 DOL proposed independent contractor rule means specifically for the trucking industry.

Important Clarification for the Trucking Industry

The proposal indicates that compliance with federal safety requirements, including drug and alcohol testing and other regulatory standards, should not automatically be treated as evidence of employer control.

For carriers and owner-operators operating under FMCSA regulations, this distinction matters.

Regulatory compliance is not the same as employment control.

That clarification provides a better understanding of obligations for transportation providers.

What the 2026 Independent Contractor Rule Means for Owner-Operators Leased to a Carrier

If you are an owner-operator leased onto a motor carrier’s authority, classification depends on how your relationship operates in practice, not just what your contract says.

Under an economic realities analysis, regulators will look at:

• Whether you can refuse loads

• Whether you control your schedule

• Whether you have meaningful opportunity to increase profit

• Whether you can operate as a separate business

• Whether you bear real business risk

The more independence and control over your own business decisions you maintain, the stronger your position will be as an independent contractor.

The more economically dependent you are on one carrier without the freedom to make your own business decisions, the more scrutiny the relationship may receive.

Again, this is a proposed rule. But it reinforces an important principle: If you are operating as a business, you must function like one.

What the 2026 Independent Contractor Rule Means for Carriers Using Owner-Operators

For carriers, this proposal highlights the importance of operational structure.

Worker classification risk does not turn on contract labels alone. It turns on actual practice.

Carriers should ensure that their owner-operator programs:

• Allow genuine load refusal

• Avoid forced dispatch structures

• Preserve business discretion

• Avoid excessive operational control

• Align compensation with entrepreneurial opportunities

The proposed rule may provide more predictability than the 2024 framework, but it does not eliminate misclassification exposure.

Operational discipline remains essential.

What Happens Next?

The 2026 DOL independent contractor rule proposal is currently in the public comment period.

The Department of Labor will review submitted comments before determining whether to finalize, revise, or withdraw the proposal.

Until a final rule is issued and takes effect, the current regulatory framework technically remains in place.

Stakeholders in the trucking industry may wish to monitor the rulemaking process and review the full text of the proposal in the Federal Register.

Final Thoughts

The 2026 DOL independent contractor rule proposal does not eliminate the owner-operator model.

It reinforces a long-standing legal question: Is the individual economically dependent on the company, or operating an independent business?

For owner-operators, clarity and autonomy matter.

For carriers, structure and operational consistency matter.

We will continue monitoring this rulemaking and provide updates as the process moves forward.