FGA Urges Department of Labor Not to Delay Implementation of the Independent Contractor Status Under the Fair Labor Standards Act

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The Foundation for Government Accountability (FGA) responds to the Department of Labor’s delay in implementation of the Independent Contractor Status Under the Fair Labor Standards Act. FGA encourages DOL not to delay the effective date as the independent contractor rule ends inconsistencies between federal courts by providing a formal independent contractor classification under the Fair Labor Standards Act (FLSA).

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“This consistency in defining independent contractors will encourage partnerships between businesses and entrepreneurs so that they can work together more effectively,” said Chase Martin, FGA Legal Affairs Director.

The Foundation for Government Accountability (FGA) responds to the Department of Labor’s delay in implementation of the Independent Contractor Status Under the Fair Labor Standards Act.

FGA encourages DOL not to delay the effective date as the rule provides much-needed clarity to the “economic realities” test which determines whether a worker is a contractor or employee. The independent contractor rule ends inconsistencies between federal courts by providing a formal independent contractor classification under the Fair Labor Standards Act (FLSA). It also does not reflect significant policy change to be reconsidered by the current Administration.

“Delaying the rule will take away certainty to businesses and stakeholders who suffer from the nuances that different states use to define independent contractors. This consistency in defining independent contractors will encourage partnerships between businesses and entrepreneurs so that they can work together more effectively,” said Chase Martin, FGA Legal Affairs Director.

Russell Hollrah, Executive Director at the Coalition to Promote Independent Entrepreneurs added, “The clarification these new regulations provide benefits all stakeholders. The sooner they become effective, the sooner the costly and unpredictable litigation over worker status under the FLSA can begin to subside.”

Especially during these uncertain times, there is a need for a clear, consistent method to define the workforce and reduce worker misclassification. FGA is joined by the Coalition to Promote Independent Entrepreneurs as they call for the implementation of the Independent Contractor Rule.

For more information on the effects of delaying the independent contractor rule visit: https://thefga.org/commentary/biden-independent-contractor-rule/

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The Foundation for Government Accountability is a non-profit, multi-state think tank that specializes in health care, welfare, and work reform. To learn more, visit TheFGA.org

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