The U.S. Department of Labor (DOL) has issued a significant 2026 proposed rule regarding Independent Contractor classification under the Fair Labor Standards Act (FLSA). This proposal rescinds the 2024 rule and reintroduces a revised economic reality framework that may substantially impact how businesses classify workers as employees or independent contractors.
HR leaders cannot confidently classify workers as employees or independent contractors because the federal standard keeps changing — and misclassification carries severe financial and legal consequences.
This webinar provides a comprehensive breakdown of the 2026 proposal, key differences from prior rules, compliance risks, and practical steps organizations should take to mitigate worker misclassification exposure.
What just recently announced (02-26-2026), new (or old) criteria is the DOL now using to determine worker status
· What exactly is the economic reality test under the DOL
· What classifications of workers are permitted under IRS Rules
· What is the common law rule, and how is it used to determine worker status
· What are the three factors the IRS uses to determine worker status, and how to apply them correctly
· How the FLSA rules differ from the IRS rules and why you must follow both, even as the FLSA regs are being updated in 2026
· How does the state trump both the IRS and the FLSA on determining independent contractor status with the ABC test for SUI
· What are the latest agreements or programs being used by the IRS, DOL, and the states to “find” misclassified employees
· Using the Form SS-8 to your advantage to determine worker status
· Who gets a W-2 and who gets a 1099, and why it should never be the same worker
This webinar is essential for anyone responsible for worker classification, workforce flexibility, or compliance strategy:
· Business owners and executives - If your company relies on independent contractors, gig workers, or consultants, you need to understand how the proposed rule could affect your business model and risk exposure.
· HR professionals and HR business partners - If you are responsible for classifying workers, drafting contractor agreements, conducting audits, or advising leadership on compliance risk.
· General counsel and compliance leaders - If you need to evaluate litigation exposure and understand how the proposed “core factors” test differs from the 2024 rule.
· Payroll and workforce administration professionals - If worker classification impacts overtime eligibility, recordkeeping, tax reporting, or FMLA determinations.
· Staffing, franchise, and contractor-heavy employers - If your organization depends on flexible workforce structures, and you need clarity on what the DOL’s proposed rule means for your operations.
· Managers and operational leaders who engage contractors directly - If you supervise or work alongside independent contractors and need to understand how control, profit opportunity, and actual practice affect classification status.
Vicki M. Lambert, CPP, is President and Academic Director of The Payroll Advisor™, a firm specializing in payroll education and training. The company’s website www.thepayrolladvisor.com offers a payroll news service which keeps payroll professionals up-to-date on the latest rules and regulations.
With nearly 40 years of hands-on experience in all facets of payroll functions as well as over three decades as a trainer and author, Ms. Lambert has become the most sought-after and respected voice in the practice and management of payroll issues. She has conducted open market training seminars on payroll issues across the United States that have been attended by executives and professionals from some of the most prestigious firms in business today.
A pioneer in electronic and online education, Ms. Lambert produces and presents payroll-related audio seminars, webinars, and webcasts for clients, APA chapters, and business groups throughout the country. Ms. Lambert is an adjunct faculty member at Brandman University in Southern California and is the creator of and instructor for their Practical Payroll Online program, which is approved for recertification hours by the APA. She is also the instructor for the American Payroll Association’s “PayTrain” online program also offered by Brandman University.

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This webinar has been approved for 1.5 HR (General) re-certification credit hours toward California, GPHR, HRBP, HRMP, PHR, and SPHR recertification through the HR Certification Institute.
The use of this seal is not an endorsement by the HR Certification Institute of the quality of the activity. It means that this activity has met the HR Certification Institute’s criteria to be pre-approved for re-certification credit.