The U.S. Department of Labor has issued a proposed rule to rescind the independent contractor rule implemented under the Biden administration.

Labor’s proposal would generally revert to the 2021 standard on how employers, such as motor carriers, classify workers as either independent contractors or employees. 

“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,” Andrew Rogers, administrator of Labor’s Wage and Hour Division, said in a press release outlining the rule.

The proposed rule applies an “economic reality” test. It emphasizes two “core factors” — the company’s control over the work and the worker’s opportunity for profit or less based on initiative and investment.

The 2024 rule adopted a six-factor test, with no single factor carrying more weight than the others.

The American Trucking Associations praised the proposed rule, which it said will help avoid confusion and reduce litigation risk.

“The Trump administration’s proposal represents a significant step forward to defend the livelihoods of the hundreds of thousands of truckers who choose to work as independent contractors,” said ATA President and CEO Chris Spear.  “ATA will continue to support the effort to finalize this rule as well as urge Congress to pass legislation that would codify President Trump’s beneficial policy into law.”

The Labor Department is accepting comments on the proposed rule until April 28. A final rule could be issued later in 2026.