The GigReporter

A federal rule change could reshape how delivery drivers are classified

What final-mile operators need to know now

On February 26, 2026, the U.S. Department of Labor (DOL) announced its intent to rescind the Biden-era worker classification rule and replace it with a new framework for determining independent contractor status under the Fair Labor Standards Act (FLSA). While the rule is not yet final, the proposed changes could meaningfully affect how final-mile carriers, delivery platforms, and gig-economy logistics companies structure their workforces.

What's changing -- and what isn't

The proposed rule would replace the Biden administration's broader multi-factor balancing framework with a more streamlined approach resembling guidance from President Trump's first term. The DOL will continue applying the longstanding "economic reality" test, which asks whether a worker is economically dependent on your business or genuinely operates as an independent enterprise.

The most important shift: the proposed rule places heightened weight on just two "core" factors:

When both of these factors point in the same direction, they will carry significant weight in the classification analysis. Secondary "guidepost" factors -- such as the worker's skill level, the permanence of the relationship, and whether the work is integrated into your core business -- remain in the framework, but will carry less weight than before.

Why final-mile operators should pay close attention

The DOL has explicitly identified gig-economy delivery platforms as one of the industries this rule is designed to address.

If finalized as proposed, the new framework could offer greater predictability for operators who structure their driver relationships with genuine flexibility and entrepreneurial independence. But a looser federal standard doesn't mean you're in the clear -- far from it.

State law still governs

California, Oregon, and Washington -- major markets for last-mile logistics -- all apply stricter independent contractor tests than the current or proposed federal rule. Operators in those states must meet state standards regardless of what the DOL finalizes. Misclassification under state law carries its own significant liability.

What you should do right now

The public comment period is open through April 28, 2026 -- Logistics Brokers and Owner operators are encouraged to submit comments. In the meantime, the 2024 Biden-era rule remains in effect.

The bottom line

A more business-friendly federal rule may be on the horizon -- but it's not a green light to assume your contractor model is bulletproof. The smartest final-mile operators will use this moment of regulatory flux to conduct a thorough, honest review, and make sure their practices reflect the reality of the relationships they have with independent contractors, ensuring they are not just the labels in a contract.

The public comment window closes April 28, 2026. Until a new final rule is issued, the 2024 rule remains in force.

Source & Disclaimer: This post is based on legal analysis regarding the U.S. Department of Labor's February 26, 2026 announcement of its proposed rule to rescind and replace the Biden-era independent contractor classification framework under the Fair Labor Standards Act. Public comment is open through April 28, 2026. This blog post is for informational purposes only and does not constitute legal advice. Consult qualified legal counsel for guidance specific to your business.