The independent contractor rule roundtable scheduled for April 9 gives freelancers and self-employed professionals a rare chance to weigh in on federal worker classification policy. The Small Business Administration’s Office of Advocacy announced the virtual event on March 24, inviting small business owners to discuss the Department of Labor’s proposed rule that would make it easier to classify workers as independent contractors.
This roundtable comes at a critical moment. The DOL published a proposed rule on February 27 that would rescind the Biden-era 2024 classification framework and replace it with a simpler, two-factor test. Public comments are due by April 28, and this roundtable is designed to help small business owners understand the proposal and share their experiences before the deadline.
What the Proposed Rule Would Change
The DOL’s 2026 proposal moves away from the “totality-of-the-circumstances” test used under the 2024 rule. That framework considered six equally weighted factors when determining whether a worker is an employee or an independent contractor, creating what many business groups called an unpredictable and overly complex standard.
The new proposal returns to an “economic reality” test built around two core factors that carry the most weight, according to the SBA Office of Advocacy. The first is the nature and degree of the worker’s control over the performance of the work. The second is the worker’s opportunity to earn a profit or incur a loss based on entrepreneurial initiative or investment.
If both core factors point in the same direction, the classification is typically straightforward. When they conflict, three additional factors come into play: the degree of specialized skill required, the permanence or duration of the relationship, and whether the work is part of an integrated unit of production.
For freelancers who set their own schedules, choose their own clients, and invest in their own tools and marketing, this framework should make independent contractor classification easier to establish and defend.
Why This Matters for Self-employed Professionals
Worker classification is not an abstract legal question for freelancers. It determines whether you can legally operate as an independent business, how your taxes are structured, and whether clients feel confident hiring you without fear of misclassification penalties.
The Biden-era 2024 rule made many businesses hesitant to engage independent contractors. Its multi-factor test created ambiguity, and companies responded by either converting contractors to employees or reducing freelance engagements altogether. The Freelancers Union and several industry groups reported a measurable chilling effect on freelance hiring during that period.
The SBA estimates that the proposed 2026 rule would save small businesses $2.31 billion over 10 years, or approximately $329 million in annualized cost savings. Those savings come from reduced legal compliance costs, fewer classification disputes, and greater clarity for businesses that rely on freelance talent.
For the more than 70 million Americans who freelanced in 2025, this proposed rule represents a potential shift toward a more contractor-friendly regulatory environment. However, the rule is still in the proposal stage, and public input will shape the final version.
What You Should Do Now
The April 9 roundtable and the April 28 comment deadline are both opportunities for self-employed professionals to advocate for their interests. Here is how to participate.
- Attend the virtual roundtable. The SBA event runs from 1:00 PM to 3:00 PM ET on April 9 via Microsoft Teams. It is open to all interested parties. Contact Janis Reyes at [email protected] for details or to discuss issues you want to raise during the session.
- Submit a public comment. The DOL is accepting comments on the proposed rule through April 28, 2026. You can submit comments through the Federal Register. Focus on how the current or proposed classification framework affects your ability to operate as an independent contractor.
- Review your own classification status. Use this moment to confirm that your working arrangements clearly reflect independent contractor status. Make sure you control your own schedule, use your own tools, serve multiple clients, and bear the risk of profit or loss. Our guide to 1099 vs. W-2 classification can help you understand where you stand.
- Document your independence. If you are a freelancer who operates as a genuine business, keep records that demonstrate it. Maintain a separate business bank account, track your own expenses, market your services to multiple clients, and use written contracts that define the scope and terms of each engagement.
Broader Context and What To Watch Next
The proposed rule is part of a broader pattern of regulatory shifts around worker classification. The 21st Century Worker Act, introduced in March 2026, would create a separate statutory category for independent contractors with explicit protections. Several states are also revising their own classification tests, which can differ significantly from the federal standard.
The DOL’s proposal does not override state laws. Freelancers in states like California, which use the stricter ABC test under AB5, will still need to meet state-level requirements regardless of what the federal rule says. However, a clearer federal standard can influence how states approach classification over time.
The comment period is the most important immediate milestone. Federal agencies are required to consider public comments before finalizing a rule, and comments from actual freelancers and small business owners carry significant weight. If you have a story about how classification rules have affected your business, now is the time to share it.
Frequently Asked Questions
Who can attend the SBA roundtable on April 9?
The roundtable is open to all interested persons, including freelancers, small business owners, industry groups, and anyone affected by independent contractor classification rules. The event is virtual and runs from 1:00 PM to 3:00 PM ET via Microsoft Teams. You can contact Janis Reyes at [email protected] for access details or to discuss topics you want to raise.
Is the new independent contractor rule already in effect?
No. The DOL’s 2026 proposal is currently in the public comment period, which closes on April 28, 2026. After reviewing comments, the DOL will issue a final rule. The timeline for finalization has not been announced, but the process typically takes several months. The existing 2024 rule remains in effect until the new rule is finalized.
How does the proposed rule differ from state classification laws?
The proposed federal rule uses an “economic reality” test focused on two core factors: worker control and opportunity for profit or loss. Some states use different tests. California’s AB5, for example, applies a stricter ABC test that presumes workers are employees unless specific conditions are met. The federal rule does not override state laws, so freelancers must comply with both federal and applicable state classification standards.
Photo by Aleh Tsikhanau; Unsplash
