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 announced earlier this month their planned regulatory plan for the second half of 2026. Included in the plan is the joint employer standard, planned to be issued this month, a final independent contractor rule, planned to be released in October, and potentially a new heat rule from OSHA that impacts indoor and outdoor workers, planned for December. More information on these rules can be found by clicking the link below.
The Department of Labor also announced it will be pursuing rulemaking around work hours for 14- and 15-year olds and tip credit regulations before the end of the year. We will provide updates on these proposed rules as they become available.
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 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)
In March, the National Labor Relations Board (NLRB) voted to reinstate 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 two years ago. 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 go over the contract’s day-to-day practices. 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 dismissing 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 includes an overtime salary threshold between $455 to $684 per week, or $35,568 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.
“No Tax on Tips” (Final Rule Published, In Effect)
In September 2025, the U.S. Treasury announced its rule on “No Tax on Tips,” a provision that was passed under the One Big Beautiful Act. In November 2025, the IRS and Treasury issued the final rule to guide employees who received tips and overtime during the 2025 tax year. The final rule includes 68 qualifying tipped occupations and specifies that these tips must be voluntarily paid and in cash or through other payment. 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 Expected October 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 it expects 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 rescinded the old 2024 Independent Contractor rule last year, citing 5 legal challenges.
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.
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 employes 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.
Occupation Safety and Health Administration Heat Rule (Proposed Rule Pending; Florida Chamber Submitted Comments, Amended Rule Expected 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. A supplemental notice is typically filed when the rule has been substantially changed or there has been substantial time since the original notice was issued. OSHA had originally filed its notice for proposed rule making on August 30, 2024, with the public comment period extending through October of last year.
In response to the Occupational Safety and Health Administration (OSHA) 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 include 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.
While the rule was proposed under the Biden Administration, some organizations are pushing OSHA to issue a scaled back heat safety rule. Several national business groups have called for the adoption of the Nevada standard, which only requires a written plan. The goal of the groups pushing for a standard now is to finalize rulemaking under a pro-business administration.
However, not everyone agrees. Congressman Mark Messmer filed legislation in November 2025 to block OSHA’s rulemaking. The bill received its first hearing in July, passing the House Committee on Education and Workforce. There are 60 co-sponsors, including eight from Florida, however there is not a Senate companion.
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 nearly 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 leaders have filed a lawsuit challenging the OSHA rule. The Trump administration may review this rule and could potentially overturn the rule in the coming years.