On June 3, the U.S. Department of Labor that it plans to engage in rulemaking on determining employee or independent contractor status under the Fair Labor Standards Act.Ìý

As part of the rulemaking process, the agency will hold a public forum on June 24 from 2:30 to 4:30 p.m. ET to hear input from employers. ÀÏÅ£Ó°ÊÓwill be participating in the forum. .

Once a proposed rule is published in the Federal Register, there will be a notice and comment period allowing the public to review the proposal and provide formal written comments.ÌýÌý

Background:

In January 2021, the DOL under President Trump issued an independent contractor final rule under the Fair Labor Standards Act, which ÀÏÅ£Ó°ÊÓ. Soon after, the DOL under President Biden issued a proposed rule to withdraw the final rule and ÀÏÅ£Ó°ÊÓ opposing it. On March 26, ABC, the ÀÏÅ£Ó°ÊÓSoutheast Texas Chapter and the Coalition for Workforce InnovationÌýagainst the DOL. In May, the DOL rescinded the final rule.

On March 15, 2022, the U.S. District Court for the Eastern District of Texas dealt a blow to the Biden administration’s efforts to delay and rescind theÌý in that case. Under aÌýÌýapplauded by ABC, the ABC-supportedÌýÌýwent into effect as scheduled on March 8, 2021, and remains in effect today.

Desired Outcome:

ÀÏÅ£Ó°ÊÓwill be commenting on and closely monitoring the DOL’s latest rulemaking to ensure compliance with the district court’s order, which remains in effect. Independent contractors are an essential lifeline to the construction industry, and any effort by the DOL to undermine that status will likely be challenged by the coalition of which ÀÏÅ£Ó°ÊÓis a part.

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