Federal Corner
The Federal Corner is an initiative of the Florida Chamber under the Small Business Council and the Litigation & Regulatory Reform Center that tracks and engages in federal rules out of Washington, D.C., that may be problematic for Florida businesses.
The Federal Corner is intended to provide details of what is happening in Washington, D.C., that may impact your business. It’s important that if these federal provisions apply or potentially apply that you are aware so you can take advantage or take the proper steps accordingly.
The U.S. Department of Labor’s (DOL) final Independent Contractor rule reached the White House Office of Information and Regulatory Affairs (OIRA) on September 28, 2026, the last step before it is published. Additionally, on September 30, 2026, the U.S. Senate confirmed Keith Sonderling as U.S. Secretary of Labor, where he is expected to lead efforts to finalize the independent contractor, joint employer and heat rules.
Small businesses should also be aware that U.S. Citizenship and Immigration Services (USCIS) issued a final rule on October 14, 2026, permanently ending the automatic extension of up to 540 days for many employee work permits while renewals are pending. Employers should track work permit expiration dates and reverify employment eligibility on Form I-9 on time to avoid gaps in work authorization and potential penalties.
If you would like to engage in our federal legislative or regulatory advocacy efforts, please contact Florida Chamber Vice President of Government Affairs, Carolyn Johnson, at cjohnson@flchamber.com.
DOL Issues Scaled Back Joint Employer Rule for Businesses (Proposed Rule Pending, Public Comments Closed June 22, 2026)
On April 22, 2026, the U.S. Department of Labor (DOL) Wage and Hour Division released a new proposed rule on joint employer liability. The proposed rule should help reduce compliance costs and reduce the risk of liability when entering certain business relationships. The proposal sets standards for determining joint employer status in “vertical” and “horizontal” scenarios. Horizontal joint employment occurs when separate related employers both employ the same worker. Vertical joint employment, which is more common, refers to when an employee has a working relationship with one employer, such as a labor provider, staffing agency or subcontractor, and there is another company who receives the benefit of that employee’s labor.
The DOL joint employer rule comprises a four-factor analysis for vertical joint employment: (1) if the business hires or fires the employee, (2) supervises and controls the employees’ work schedule or conditions of employment to a substantial degree, (3) determines the employees’ rate and method of payment and (4) maintains the employees’ employment record. The proposal would apply the same test under the Fair Labor Standards Act, Family and Medical Leave Act and Migrant and Seasonal Agricultural Worker Protection Act.
The comment period closed toward the end of June and it is widely expected that DOL intends to finalize the rule to adopt the uniform four-factor test.
NLRB Reinstates 2020 Joint Employer Rule for Businesses (Final Rule Published, In Effect)
On February 26, 2026, the National Labor Relations Board (NLRB) issued a final rule, effective February 27, 2026, reinstating a 2020 rule that decides when a company is viewed as a “joint employer” under federal labor law. This change in standard comes after a federal court vacated the Biden administration’s definition of joint employer in 2024. The rule from 2020 required a company to exercise “substantial direct and immediate” control over another firm’s workers to be classified as a joint employer. For employers who work with contractors, the reinstatement of the rule reduces the risk that the NLRB can find joint employer status based only on indirect control. Employers should still review their day-to-day practices, not just contract language. The rule places greater weight on how an entity operates rather than how relationships are described in contracts, making clear that even well-drafted agreements will not protect businesses that exercise substantial, direct, and immediate control in practice.
NOTE: The NLRB rule is different than the rule proposed by the DOL. The NLRB rule focuses on collective bargaining rights and unfair labor practices while the DOL rule focuses on wage and hour matters under the Fair Labor Standards Act, Family and Medical Leave Act and the Migrant and Seasonal Agricultural Worker Protection Act. The NLRB rule makes it more difficult for a business to be held jointly liable for labor law violations.
U.S. Department of Labor (DOL) 2019 Overtime Rule (In Effect)
On May 15, 2026, the DOL rescinded the 2024 overtime rule that was previously struck down in federal court by withdrawing its appeal and filing a technical amendment to restore the 2019 salary thresholds. This effectively reinstated the previous 2019 overtime rule that was promulgated under the first Trump Administration. The 2019 rule raised the overtime salary threshold from $455 to $684 per week ($35,568 annually) and set the highly compensated employee threshold at $107,432 annually. Under the 2024 rule under the Biden Administration, the salary threshold was increased to $844 a week – with an automatic escalator to increase the salary threshold to $1,128 per week in 2025 before an employee was exempt from overtime. This DOL action resolves any uncertainty on the overtime threshold that was working itself through the courts and reinstates the lower threshold, potentially saving job creators money. Employers should remember that employees must also meet the salary basis and job duties tests to be exempt.
“No Tax on Tips” (Final Rule Published, In Effect)
In September 2025, the U.S. Treasury announced its proposed rule on “No Tax on Tips,” a provision that was passed under the One Big Beautiful Bill Act. On April 13, 2026, the IRS and Treasury published the final rule, which took effect June 12, 2026, and applies to tips received beginning with the 2025 tax year. The final rule includes more than 70 qualifying tipped occupations and specifies that these tips must be voluntarily paid by the customer in cash or a cash equivalent, such as a credit or debit card. Service charges and mandatory automatic gratuities do not qualify, and employers may not reclassify wages as tips. Available through 2028, those in eligible occupations can deduct up to $25,000 in tip income on their taxes and the deduction phases out for those that make more than $150,000 ($300,000 for joint filers). The list of occupations includes beverage and food service staff, entertainment, hospitality, transportation and wellness services. The notice provides further detail explaining how these deductions are applied. For further information, click here.
U.S. Department of Labor Independent Contractor Rule (Proposed Rule Pending, Public Comment Period Closed April 28, 2026, Final Rule Under White House Review)
On September 28, 2026, DOL sent its final Independent Contractor rule to the White House Office of Information and Regulatory Affairs (OIRA), the last stop before the rule is published. OIRA review can take several weeks, and a final rule is expected to be released this quarter. In early July, the U.S. Department of Labor (DOL) released its 2026 agency rule list for the second half of the year, indicating that it expected to finalize the Independent Contractor rule sometime in October.
On February 26, 2026, DOL released its proposed rule on how to classify independent contractors, unraveling the rule in effect under the Biden Administration. The proposed rule makes it easier for gig companies to classify workers as independent contractors. This will help reduce litigation and clear up the sometimes blurry line between employees and independent contractors. There are two main factors in the new proposed rule: (1) the individuals’ control over their work and (2) the individuals’ opportunity for profit or loss. For those workers whose status still isn’t clear based on these two factors, the DOL instructs businesses to determine the amount of skill required for the work, the degree of permanence and whether the work is a part of an integrated unit of production.
This new rule should help businesses make clearer decisions on whether someone is an independent contractor or an employee. DOL stopped enforcing the 2024 Independent Contractor rule in May 2025, but that rule technically remains on the books until the new final rule is published. Courts are not bound by DOL’s rule in misclassification lawsuits, and state law tests may differ.
Businesses that rely on the independent contractor model can review the proposed rule here and should consult with a labor attorney before reclassifying any employees.
U.S. Citizenship and Immigration Services Ends Automatic Extension of Work Permits (Final Rule Published, In Effect)
On October 14, 2026, U.S. Citizenship and Immigration Services (USCIS) issued a final rule that permanently ends the automatic extension of up to 540 days for certain employment authorization documents (EADs), commonly known as work permits, while an employee’s renewal application is pending. The change applies to many EAD categories for renewal applications filed on or after October 30, 2025. USCIS first made this change through an interim final rule on October 30, 2025, and the final rule adopts it without changes.
Previously, many workers could keep working after their work permit expired as long as they had filed a timely renewal. Now, for affected employees, work authorization generally ends when the current card expires and does not resume until USCIS approves the renewal, unless the employee has another basis to work. Federal law prohibits employers from knowingly continuing to employ a worker who is no longer authorized to work, and violations can result in civil penalties per worker, in addition to separate fines for Form I-9 paperwork errors.
To stay compliant, small businesses should track the expiration dates of employees’ work permits, remind employees to file renewals early, and reverify employment eligibility on Form I-9 on or before the expiration date. Employers should not demand a specific document during reverification; employees may choose any acceptable document from the Form I-9 lists. Businesses with questions about specific employees should consult with an immigration attorney.
Occupational Safety and Health Administration Updates National Emphasis Program (NEP) on Heat Related Hazards (In Effect Through 2031)
On April 10, 2026, OSHA outlined updated policies and procedures to their NEP on workplace heat-related hazard prevention. The NEP is designed to protect employees from heat related hazards and illness in both indoor and outdoor workplaces, including general industry, maritime, agriculture, and construction. The NEP updates the list of targeted industries for enforcement and emphasizes outreach in high-risk industries to assist employers in preventing health issues and fatalities during high heat conditions. The original NEP on heat-related illness began April 8, 2022, and was set to expire on April 8, 2026. The updated policy will help encourage early interventions by employers to prevent heat-related illness or death. For more information on the new OSHA NEP program on outdoor and indoor heat related hazards, click here or here.
Occupational Safety and Health Administration Heat Rule (Proposed Rule Pending; Florida Chamber Submitted Comments, Supplemental Proposal Expected by December 2026)
In early July, the U.S. Department of Labor (DOL) released its 2026 agency rule list for the second half of the year, indicating that the Occupational Safety and Health Administration (OSHA) plans to file a supplemental notice of proposed rulemaking in December to address heat hazards in indoor and outdoor settings, with a final rule targeted for October 2027. At the National Safety Council’s Safety Congress & Expo in mid-September, an OSHA official indicated that the supplemental notice may come sooner than December and that now OSHA has “different thoughts” on its prior proposed rule. OSHA had originally filed its notice for proposed rulemaking on August 30, 2024, with the post-hearing public comment period closing on October 30, 2025. It is expected that once the supplemental notice is filed, there will be another period for public comment.
In response to OSHA’s proposed rule on heat illness and injury in the workplace, the Florida Chamber of Commerce and Florida Chamber Leadership Cabinet submitted formal comments on behalf of Florida businesses. The major concerns included an estimated $10 billion in increased compliance costs annually, the unintended consequences of a blanket one-size fits-all approach as opposed to site-specific, business-led solutions, and the outsized impact on Florida’s key economic sectors.
The Florida Chamber Safety Council will continue to lead on heat safety in the workplace, providing free resources to businesses found on the heat stress prevention platform.
Occupational Safety and Health Administration Union Walk Around Rule (In Effect, Pending Ongoing Litigation)
The Occupational Safety and Health Administration (OSHA) rule allowing workers to select a union representative to accompany OSHA inspectors walking around employers’ workplaces – regardless of whether the workplace is unionized or the representative selected by the workers is an employee of the business being inspected – took effect more than two years ago on May 31, 2024. The rule changes the previous requirement that the representative accompanying the OSHA inspector must be an employee and could present significant challenges for employers.
The final rule is likely to increase union participation in the inspection process and could potentially be problematic as representatives with unknown motives are now allowed to participate in inspections of employers’ property. The rule also means sensitive information could potentially be shared with union representatives, even in non-union workplaces, which could lead to increased union participation. There have also been concerns raised that representatives may be more focused on finding violations rather than working collaboratively to improve safety.
A coalition of business groups, including the U.S. Chamber of Commerce, filed a lawsuit in federal court in Texas challenging the OSHA rule, and the rule remains in effect while that case is pending. The Trump administration may review this rule and could potentially overturn the rule in the coming years.