Employers don’t violate federal labor law by misclassifying their workers as independent contractors instead of employees, the National Labor Relations Board ruled on Aug. 29.

The 3-1 ruling in a case involving Velox Express Inc. rejects a legal theory advanced by the Obama-era NLRB General Counsel Richard Griffin, who had convinced several administrative law judges to rule against companies for misinforming workers about their employment status.

The NLRB reversed a judge’s ruling that Velox unlawfully interfered with its workers’ rights under the National Labor Relations Act by wrongly telling them that they’re independent contractors. Unlike employees, contractors have no rights...