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In February 2026, the Trump Administration released a notice of proposed rulemaking (NPRM) to change how companies determine who qualifies as an employee. The change would eliminate four of the six current metrics, skewing the outcome to allow misclassification.

Due to systemic labor market inequalities and occupational segregation, the harms of misclassification fall disproportionately on women, people of color, and immigrants, as they are , like home health aids, janitors, house cleaners, construction workers, and nail technicians. The proposed changes could further expand these inequities, eroding the long-term protections afforded to employees under the existing laws.