By Jacob Claveloux

On January 10, 2024, the United States Department of Labor once again issued a new Rule regarding Independent Contractor status, after having their prior 2021 Rule blocked by a federal court in 2022.  The new Rule  (https://www.dol.gov/agencies/whd/flsa/misclassification/rulemaking), like the 2021 version, is aimed at limiting the circumstances under which businesses can classify workers as independent contractors, rather than employees, with the Department stating that the “final rule will reduce the risk that employees are misclassified as independent contractors”.  The Final Rule, unless overturned, would go into effect March 11, 2024.

 The DOL’s new Rule is being seen as concerning to many of the same industries (including healthcare, construction, and transportation) that were troubled by the prior DOL rule.  So, it is not surprising that some potentially affected companies including Uber, Lyft, the American Trucking Associations, and the Retail Industry Leaders Association, have already filed suit, before the same court that previously dismissed the DOL’s 2021 rule.  That action https://rila.my.salesforce.com/sfc/p/#61000000dOrP/a/8X0000012xtJ/mQGJ2rBp_5lc9T6bACl3QogaVZWPC3vENMFABSkH.Ws), is being filed as a motion to lift the previously issued stay put in place by the Fifth Circuit Court of Appeals in the 2022 challenge and remand the case back to the District Court to consider the new DOL Rule in light of their prior holding overturning the 2021 Rule.  The Coalition is asking the court to “act expeditiously” given the March 11 intended implementation.

 This is not legal advice and is attorney advertising.