DOL regulatory and deregulatory proposals affect employers
The DOL’s midyear regulatory agenda outlines nearly 150 proposals aimed at reducing employer compliance burdens. Key items include a final independent contractor rule in October 2026, tip and child labor proposals in August and September, and August finalization of the EO 11246, Section 503 and VEVRAA rescissions affecting federal contractors.
As part of the Trump administration’s second regulatory agenda, the Department of Labor (DOL) has proposed numerous regulatory and deregulatory proposals. The executive summary of the DOL’s agenda states the agency’s mission is advocating for workers by ensuring employers are held accountable for their legal obligations, while helping employers to understand and comply with the many laws and regulations affecting their workplaces.
The newly published midyear regulatory agenda outlines nearly 150 proposals aimed at reducing the compliance burden on American employers while significantly altering how the labor force and workplace benefits are governed. HR leaders and business owners face a shifting compliance landscape.
This article focuses primarily on the proposals for wage and hour law, the Office of Federal Contract Compliance Programs (OFCCP), and some changes proposed for the Occupational Safety and Health Administration (OSHA).
What wage and hour changes is the DOL proposing?
Independent contractor rule
Comments on the independent contractor proposal were closed on April 28, 2026. The final rule is scheduled to be issued in October 2026. The rule rescinded the 2024 Biden independent contractor rule and replaced it with a modified version of the 2021 Trump independent contractor rule.
Joint employer rule
In April, the DOL proposed a new joint employer rule, with the comment period closing on June 22, 2026. The agenda doesn’t indicate when the rule will be finalized.
Tip regulations
The DOL proposes to issue a notice of proposed rulemaking to amend regulatory provisions related to tipped employees under the Fair Labor Standards Act (FLSA) in August 2026.
Child labor
In September 2026, the DOL has scheduled to issue a proposal “relating to permissible hours of work for 14- and 15-year olds.”
On a longer-term basis with dates to be determined, the Wage and Hour Division (WHD) is considering proposals related to white collar exemptions and what “kinds of activities constitute hours worked for purposes of the FLSA.”
Which OFCCP proposals is the DOL finalizing?
Executive Order (EO) 11246
The rescission of EO 11246 regulations is proposed to be finalized by the end of August 2026. The comment period ended in September 2025.
Section 503
The DOL also proposes to finalize the changes to the Section 503 regulations, including removal of utilization goal, the related data collection analysis, and the disability self-identification requirements in August 2026 despite the objections to the changes in the comment letter.
However, the Office of Management and Budget (OMB) just approved extension of the current Section 503 that federal contractors must use, which asks applicants and employees to self-identify their disability status.
Vietnam Era Veterans’ Readjustment Assistance Act (VEVRAA)
The DOL will also finalize the proposal to remove the references to EO 11246 and make revisions to the VEVRAA regulatory jurisdictional thresholds in August 2026.
What is the DOL proposing for OSHA?
The DOL is planning to have a public hearing in August 2026 on its proposal to “exclude from enforcement known hazards that are inherent and integral to the essential function of a professional or performance-based occupation” from the General Duty Clause 29 U.S.C. 654(a)(1), among other proposals.
How would faith-based organizations participate in DOL programs?
The DOL has added several regulatory changes to increase the religious organizations in its programs. One proposal would clarify the rights of faith-based organizations to participate in DOL programs and revise regulations around grant funding for religious institutions.
They are part of a push under the second Trump administration to relax regulatory barriers for religious groups.
One agenda item is “Enhancing Participation of Faith Organizations in DOL Programs and Funding,” which seeks feedback from religious groups on how to remove barriers to workforce-related grants.
The DOL had sent out a notice last year from its Center for Faith that the agency wants to “better engage qualified faith organizations to help deliver services, including job training, employment support, and community outreach, without undue restrictions on such organizations’ religious liberty.”
Another agenda item is “Equal Participation of Faith-Based Organizations in DOL’s Programs and Activities,” which would align regulations with President Trump’s EO establishing federal faith centers and provide clarity regarding the rights of faith-based organizations participating in DOL’s programs. DOL says the proposed rulemaking aligns with its goal of implementing programs and activities consistent with the First Amendment and the requirements of federal law, including the Religious Freedom Restoration Act.
Frequently asked questions
When will the DOL independent contractor rule be final?
The final independent contractor rule is scheduled to be issued in October 2026. Comments closed on April 28, 2026. The rule rescinded the 2024 Biden independent contractor rule and replaced it with a modified version of the 2021 Trump independent contractor rule.
Do federal contractors still need to collect disability self-identification data?
The DOL proposes to finalize changes to the Section 503 regulations in August 2026, including removal of the utilization goal, the related data collection analysis, and the disability self-identification requirements. The OMB recently approved an extension of the current Section 503 form that federal contractors must use to ask about disability status.
What is the DOL proposing to change about the General Duty Clause?
The DOL scheduled a public hearing for August 2026 on a proposal to exclude known hazards from General Duty Clause enforcement when those hazards are inherent and integral to the essential function of a professional or performance-based occupation. The agenda includes other OSHA proposals as well.
What long-term wage and hour proposals is the DOL considering?
The Wage and Hour Division is considering proposals on white collar exemptions and on what kinds of activities count as hours worked under the FLSA. The agenda lists these on a longer-term basis with dates to be determined, so no comment period or proposal date has been set.
