The first half of 2026 has been productive at the U.S. Department of Labor (DOL). Here are the proposed changes that HR professionals should be tracking.
Worker Classification
In late February, the DOL proposed rescinding the 2024 independent-contractor rule and reinstating an economic reality test like the 2021 standard. The analysis would place more weight on two factors: control of the work and opportunity for profit or loss, when evaluating whether workers are employees or independent contractors.
The comment period for this rule closed April 28, and the department is now reviewing submissions. Employers should review contractor relationships against the proposed rule and watch for the final version.
Joint Employer
In April, the DOL proposed a single joint employer standard across the Fair Labor Standards Act, the Family and Medical Leave Act, and the Migrant and Seasonal Agricultural Worker Protection Act. This proposed rule would set separate tests for “vertical” and “horizontal” joint employment.
In particular, the vertical analysis asks whether an employer:
- Hires or fires.
- Substantially supervises or controls scheduling or workplace conditions.
- Determines wages and method of payment.
- Maintains employment records.
The comment period for this proposal closed on June 22. It would restore the approach that existed before the DOL rescinded its prior joint employer regulation in July 2021. Businesses that rely on staffing agencies, subcontractors, or franchise arrangements carry the most exposure on this subject.
Retirement Plans
On March 30, the DOL’s Employee Benefits Security Administration proposed a rule titled “Fiduciary Duties in Selecting Designated Investment Alternatives.” It proposed a six-factor safe harbor for plan fiduciaries that would add nontraditional options such as private equity, private credit, real estate, and cryptocurrency to 401(k) menus.
This proposal acts on an August 2025 executive order and would not ban or mandate anything new. However, this rule would lower the litigation risk for sponsors who follow a proper selection process. Benefits teams should track the DOL’s final version before changing any investment lineup that’s currently offered.
Benefits for Fertility Services
The Employee Benefits Security Administration has proposed creating a new category of health benefits for fertility services. Under the proposal, these benefits would be treated as “limited excepted benefits,” meaning they would be exempt from many of the federal health insurance requirements that apply to traditional health plans under laws such as the Affordable Care Act, Health Insurance Portability and Accountability Act, and the No Surprises Act. The proposed rule is a central part of the Trump administration’s effort to expand access to fertility benefits. The public comment period is open through July 13.
Workplace Safety
The Occupational Safety and Health Administration’s (OSHA’s) proposed heat injury and illness prevention rule has lost momentum after emerging in 2024. The most recent regulatory agenda set no target date for final action.
However, the stagnation of this proposed rule does not erase the associated risk. OSHA extended its heat national emphasis program in April and continues to cite heat hazards under the general duty clause. Employers should keep heat illness prevention plans in place through the summer regardless of what happens to the rule.
On the Horizon
Two items belong on the watch list for the second half of the year.
First, the white-collar overtime exemption is back on the regulatory agenda, with the DOL examining the salary threshold for executive, administrative, professional, outside sales, and computer employees after the 2019 overtime rule was formally restored. No proposal has been issued yet, but a revised threshold would touch nearly every employer.
Second, the National Labor Relations Board could get a fourth member. President Donald Trump’s nomination of James Macy, a longtime management-side attorney, would give Republicans a 3-1 board majority and the votes to overturn prior decisions on handbook rules, captive-audience meetings, joint employer status, and contractor classification. President Trump also renominated Democratic member David Prouty for another term. The Senate needs to act quickly if it wants to preserve the board’s quorum.
Kimberly Ricci is a content development writer with LRI Consulting Services Inc. in Broken Arrow, Okla.
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