U.S. Department of Labor (DoL) - Independent Contractor (IC) Proposed Rule Comment Deadline - Tuesday, December 13th

December 09, 2022

The DoL is now considering comments and receiving stakeholder feedback on the most recent version of the independent contractor rule. The recently proposed IC rule, which governs worker classification under the Fair Labor Standards Act, would rescind the January 2021 worker classification rule.  

 

The proposed IC rule directs employers to use a "totality of the circumstances" methodology, providing equal weight and based on the following factors:

  • Opportunity for profit or loss
  • Opportunity for investment
  • The degree of permanence of the work relationship
  • The degree of control by the employer over the worker
  • Whether the work is an integral part of the employer’s business
  • The worker’s use of skill and initiative

IAM submitted comments in support of earlier worker classification guidance (IC Final Rule January 2021), where employers were directed to provide greater weight and consideration to consider two of the five factors (an individual’s nature and control over their work and their opportunity for profit or loss). 

 

As IAM noted in its comments to the Department, those two factors most accurately reflect the business reality of today’s current work environment, and provide necessary flexibility for both workers and companies to operate in an effective and efficient manner. IAM also highlighted in our comments that workers within the HHGs industry frequently bring assets to the company as part of their employment, including CDLs, investment and/or ownership in trucks or other equipment and insurance.

 

IAM will be submitting comments to the Department prior to the December 13th deadline, urging the Department to reconsider the proposed totality of the circumstances approach, and to focus on the independent nature of the work performed, and restrictive parameters placed on employers under the proposed rule. By removing the weighted approach under the proposal, it is more likely that a worker would be classified as an employee, versus an independent contractor.

If your company would also like to submit comments to the rule, you may do so by clicking here.