Policy Week in Review – February 27, 2026

NLRB Formally Reinstates First Trump Joint Employer Rule 

The National Labor Relations Board on Thursday issued a rulemaking formally restoring a 2020 standard for judging whether two separate businesses are a “joint employer.” The rule follows a ruling by the U.S. District Court of the Eastern District of Texas that vacated a contrary rule issued in 2024. The Board is, therefore, returning to the traditional standard imposed during the first Trump administration, which establishes that an employer may be considered a joint employer of a separate employer’s employees only if the entity possesses and exercises substantial direct and immediate control over one or more essential terms or conditions of employment. Given that this is the standard the Board has been enforcing for some time, it does not impose any immediate change. Litigation is likely to continue in the courts over the viability of the Board’s standard. For further Littler analysis, read here.

DOL Proposes New Independent Contractor Rule 

The U.S. Department of Labor on Thursday proposed a new rule, entitled the "Employee or Independent Contractor Status Under the Fair Labor Standards Act, Family and Medical Leave Act, and Migrant and Seasonal Agricultural Worker Protection Act." The proposed rule is designed to differentiate between employees and independent contractors. If adopted, the rule would establish a standard similar to one the DOL issued under the first Trump administration. Like that first standard, the new rule aims to simplify worker classification by focusing on two main factors—control over the work, and entrepreneurial opportunity. While other factors like amount of skill and degree of permanence of the relationship would still be relevant, they would usually be unnecessary when the two main factors point in the same direction. For further Littler analysis, read here.

Chair MacKenzie Holds Hearing on Paid Leave

The House Subcommittee on Workforce Protections Chair Ryan Mackenzie (R-PA) held a hearing on February 24, titled “Balancing Careers and Care: Examining Innovative Approaches to Paid Leave,” to examine the issues and challenges of the paid family leave landscape. Chair Ryan highlighted the work of the House Bipartisan Paid Leave Working Group, co-chaired by Representatives Stephanie Bice (R-OK) and Chrissy Houlahan (D-PA), which led to the introduction of bipartisan legislation H.R. 3089, More Paid Leave for Americans Act. The bill would establish a state paid family leave public-private partnership grant program and the Interstate Paid Leave Action Network (I-PLAN), which would coordinate and harmonize paid leave benefits across the states. A recap of the hearing and witness testimony can be found here.  

House Committee on Education and Workforce Hearings in AI Series Continue

As part of the House Committee on Education and Workforce hearing series on Artificial Intelligence (AI), its Subcommittee on Early Childhood, Elementary, and Secondary Education held a hearing on February 24, titled “Building an AI-Ready America: Teaching in the AI Age,” to examine how teachers are utilizing AI in the classroom to enhance learning opportunities for students. A recap of the hearing and witness testimony can be found here.  

The series continues next week when the Subcommittee on Higher Education and Workforce Development will hold a hearing on March 4 at 10:15 AM, titled “Building an AI-Ready America: Strengthening Employer-Led Training.” You can watch on the Committee’s YouTube site.