Action Alert: Demand the US DOL Withdraw New Independent Contractor Restrictions
The US Department of Labor is proposing a complicated and subjective rule to significantly limit the circumstances where a small business can operate as an independent contractor or use an independent contractor.
Public officials often claim to be pro-small business. Now we need them to act like it and withdraw this proposed rule. Business owners and concerned citizens can take action by submitting a public comment with the federal register by November 28, 2022.
The Department of Labor’s proposed rule change under the Fair Labor Standards Act (FLSA) will have a profoundly negative impact on many small businesses. The proposal limits the ability of entrepreneurs to start and grow their businesses as independent contractors or use independent contractors. The description of this proposed rule change as a “clarification” of existing law is misleading when, in reality, it represents a radical departure from current standards that will harm millions of small businesses.
The proposed rule uses a needlessly complicated and subjective “multi-factor totality of the circumstances” test where the freedom for entrepreneurs to operate as independent contractors is significantly diminished. In other words, the standards for qualification of independent contractor status are extensive, often subjective, and much more difficult to meet. Independent contractor criteria should be clear and objective, without reliance on bureaucratic judgement calls and grey areas.
The current independent contractor standards have served our economy and workers well and have been the basis for many entrepreneurs starting their own businesses. Furthermore, limiting the instances where small businesses can use independent contractors will be detrimental to entrepreneurs already struggling to find employees.
I urge you to withdraw this harmful proposed rule change.