Independent Contractor Misclassification and Compliance News February 2026

As the independent workforce continues to grow, so do the issues of worker compliance and misclassification. It is important for enterprises to remain informed about the latest laws, regulations, and developments surrounding these topics. Each month, we bring you the latest news stories from around the web.

Healthcare Professionals in Michigan Were Misclassified As Independent Contractors

In a recent case in Michigan (Rayford v. Mobile Phlebotomy), the court found that phlebotomists, specialized healthcare professionals trained to draw blood, were misclassified as independent contractors and should have been employees. This is another example in a long line of cases involving healthcare workers who were misclassified as independent contractors.

Over the past several years, courts have completed numerous reviews and determined that healthcare providers and home health workers were often misclassified as independent contractors, including:

• Registered nurses
• Licensed practical nurses
• Home health aides
• Certified nursing aides
• Certified nursing assistants
• Housekeepers
• Laundry workers
• Dietary workers
• Contract and temporary nurses
• In-home care workers
• Home healthcare workers

The scrutiny of healthcare workers began in November 2021, when the United States Department of Labor launched an ongoing education, outreach, and enforcement initiative to ensure that employers pay caregivers their rightful wages and honor all protections afforded to them by law.

By November 2022, the DOL had conducted over 1,600 investigations and recovered over $28.6 million in back wages and damages for nearly 25,000 workers. In addition to efforts by the DOL, state attorneys general have also initiated actions against employers when healthcare workers have been misclassified.

Nurses and other healthcare professionals may be properly classified as independent contractors if the employer can demonstrate that they are, as a matter of economic reality, in business for themselves. Courts will look at:

• A worker’s opportunity for profit or loss based on their managerial skill
• The investments made by the worker
• The degree of permanence of the relationship
• The nature and degree of control
• The extent to which the work performed is an integral part of the employer’s business
• And the skill and initiative required to perform the services.

The challenge many employers face is that they want to control the work, the work is an integral part of their business, healthcare workers do not make significant investments in their business, and in some roles, a high degree of skill is not necessary. If these factors are present, the workers are most likely employees.

Businesses that engage independent contractors should be careful to document the aspects of the relationship that support the classification of the workers as independent contractors.

See: The Impact of Worker Misclassification on Your Company’s Credibility

For more information, check out our resources page on misclassification and compliance. If you have any questions about engagement, classification, or management of your independent workforce, we’re always here to help.