DOL proposes throwing out 2021 Independent Contractor Rule
The 2021 Independent Contractor rule was laid out in a favorable manner for classifying workers as independent contractors. The Department of Labor is now issuing a proposed rule to reclassify those workers as employees, instead. Trucking and delivery services are particularly likely to be affected by such a rule change. The DOL has suggested that With this amendment, employers, and workers will return to pre-2021 guidelines that test whether workers should be independent contractors who are “in business for themselves” or considered integral employees.
For 45 days the public will be able to comment on the proposed rule change in the Federal Register.
Thus far, some industry groups are claiming the move is “wholly unnecessary” and will be cost-prohibitive for many employers. Those who favor the change such as Secretary of Labor Marty Walsh are saying that this will provide federal labor protections to workers.
In a significant ruling, a federal judge in California rejected a challenge against the state's independent contractor law, AB5, from the trucking industry.