A Nashville-based federal judge has recommended a court reject a pair of freelancers' initial request to halt a new US Department of Labor rule that makes it harder for employers to label their workers as independent contractors, in a loss for businesses that said the policy would lead to more confusion and went beyond the agency's power.

Magistrate Judge of the US District Court for the Middle District of Tennessee told the court she was unconvinced that the freelancers who brought the suit would be harmed by the rule change and recommended Waverly D. Crenshaw Jr., the judge ...