When employers classify workers as independent contractors instead of employees, those workers lose access to minimum wage protections, overtime pay, unemployment insurance, workers compensation, the right to organize under the NLRA, and employer-paid payroll taxes including Social Security contributions. The line between employee and contractor has been contested in court and through regulatory rulemaking for decades. The Obama administration's 2021 economic reality test made it harder to classify workers as contractors. The Trump DOL's proposed 2026 return to a more employer-friendly standard would make it easier — directly affecting millions of gig workers, staffing firm employees, and low-wage workers in service industries.