The Department of Labor (DOL) has released a proposed rule, with comments due by April 28th to clarify when a worker is an employee or an independent contractor. The chair of the Equal Employment Opportunity Commission (EEOC) has sent a letter to the 500 largest companies concerning the use of policies, programs, and practices that promote diversity, equity, and inclusion (DEI). The Occupational Safety and Health Administration (OSHA) has issued a new poster for employers covered by OSHA to display in their workplaces and has launched a new Safety Champions Program. The Bureau of Labor Statistics (BLS) has published its annual report on the rate of unionization.
DOL Issues Independent Contractor Rule – The Wage and Hour Division (WHD) of the Department of Labor (DOL) issued a proposed rule designed to clarify whether a worker is an employee or independent contractor. The proposed rule would rescind the 2024 rule issued by the Biden Administration and replace it with one that is similar to the rule that DOL adopted in 2021. “The rule we are proposing today is not only based on long-standing legal principles used in federal courts across the country but also is aimed at ensuring that workers and employers know how to apply those principles predictably,” said Wage and Hour Division Administrator Andrew Rogers. Comments on the proposed rule are due by April 28th.
The proposed rule would apply an economic reality test to determine if a worker is an independent contractor or economically dependent on an employer for work. The proposed rule would establish two “core factors” to help determine employee or independent contractor status. The first of these factors is the nature and degree of control over the work to determine if workers are in business for themselves. The second factor is the opportunity for profit or loss based on initiative and/or investment. This second factor will lean towards independent contractor status if the individuals control key aspects of the performance of the work such as setting work schedule, selecting projects, and having the opportunity to work for others. The second factor would lead to individuals being designated employees if the potential employer controls key aspects of the performance of work. Requiring compliance with specific legal obligations, satisfying health and safety standards, maintaining insurance, meeting deadlines or quality control standards would not, according to the WHD, make the individual more or less likely to be an employee.
The proposed rule also includes three other factors that are relevant to the analysis, especially if the two core factors do not point to the same classification. The three other factors are the amount of skill required for the work, the degree of permanence of the working relationship, and whether the work is part of an integrated unit of production. Additional factors may also be considered in the analysis.
EEOC Chair Warns Top 500 Companies About DEI – Andrea Lucas, chair of the Equal Employment Opportunity Commission (EEOC) sent a letter to the largest 500 companies cautioning them about the use of policies, programs, and practices that promote diversity, equity, and inclusion (DEI) and encouraging them to commit to merit-based employment decisions. The letter states, “Hiring workers based on their merit, excellence, and character — not skin color or sex — is the right thing to do and benefits employers and employees alike.”
The letter emphasizes that the EEOC now has a quorum and can bring cases in federal courts and “has mobilized every available resource at its disposal to ensure this nation’s workforce can once again prosper under the protection of a government committed to eradicating discriminatory practices.” The letter notes that its purpose is to remind the largest employers of their non-discrimination obligations and in a footnote states, “your receipt of this letter is not intended to suggest that your company has engaged in illegal conduct.”
OSHA Update – The Occupational Safety and Health Administration (OSHA) has released a new job and safety health workplace poster that all employers covered by OSHA are required to display. The poster can be ordered on the OSHA website. Employers can choose the new poster or continue using the poster they already have on display.
OSHA also launched a new Safety Champions Program (SCP), which OSHA describes as a “voluntary cooperative program that meets businesses where they are and supports participating employers in developing new and/or improved safety and health programs.” The program is self-guided and includes introductory, intermediate, and advanced steps. The program aligns with the seven core elements of the recommended practices identified by OSHA that are management leadership, worker participation, hazard identification, hazard prevention and control, education and training, program evaluation and improvement, and communication and coordination.
Six Senators have sent a letter to the Secretary of Labor and the Assistant Secretary of Labor for Occupational Safety and Health expressing concern with the decrease in both the number of inspections by OSHA and in the amount of willful violations found during inspections. The Senators cited a comparison of OSHA statistics for the months of April through September in 2024 and 2025 and noted that in 2025, the number of inspections declined by 20% and the willful violations findings were reduced by 42%. The Senators accused the Labor Department of demonstrating a “disregard for workers’ lives, rolling back protections that keep workers safe and hobbling the agency that is tasked with overseeing worker safety.”
Rate of Unionization Remains Stable – The Bureau of Labor Statistics reported that the rate of union membership was 10% in 2025, little changed from 2024. In the private sector, 5.9% of workers are union members while in the public sector, 32.9% of workers are union members. Within the public sector, local government is the most heavily unionized at 37.8% of the workforce. Education, training, library occupations, and protective services are the occupations with the highest unionization rates. The weekly earnings of nonunion members are 84% of the weekly earnings of workers who are union members.
Neil Reichenberg is the former executive director of the International Public Management Association for Human Resources. He is an attorney, a frequent writer and speaker on public policy and human resource issues, and an adjunct faculty member at George Mason University. For questions or additional information, contact Reichenberg at neilreichenberg@yahoo.com.