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The U.S. Department of Labor's independent contractor final rule went into effect Monday after a busy last week for businesses. Was it ordered? or aborted via: preliminary injunction.
DOL has published the final rule. januaryIt has been about a year since the proposed change to the evaluation of worker independent contractor status in October 2022.
The new “circumstances as a whole” framework addresses the nature and degree of control over the work, the extent to which the work performed is an integral part of the employer's business, and the permanence of the agreement.
Acting Labor Secretary Julie Su said the rule would protect full-time workers who are misclassified and work alongside properly classified employees.
Coalition for Workforce Innovation, Associated Builders and Contractors of Northeast Texas, Associated Builders and Contractors, Inc. and Financial Services Institute, Inc., have been challenging the new standards since the administration began looking at ways to implement them. Their request worked its way through the courts, but a Texas district court judge did not address a final request for a ban before the DOL's ruling took effect March 11.
On Thursday, a group of trucking companies applied for emergency action A Louisiana district court issued a preliminary injunction along with an emergency motion for a temporary restraining order, alleging that the DOL violated the Administrative Procedure Act. This is the same claim made by other groups.
Acting Assistant Attorney General Brian M. Boynton and Acting Director of the Department of Justice's Federal Programs Division Julie Strauss Harris said: The action was called an “ambush” And it filed papers asking the court to deny the trucking company's application.
in Statement issued after publication of regulations“Continuous changes in regulatory guidance are imposing compliance burdens and legal uncertainty on HR professionals,” the Society for Human Resource Management said.
Recently, the association went one step further and announced support for: Resolutions under the Congressional Review Act This calls for a repeal of the new independent contractor rules and a return to the 2021 rules.
“We believe that the current rules encourage ambiguity that prevents companies from extending required training to independent workers, a scenario that is detrimental to all parties involved,” said Emily M. Dickens, SHRM Chief of Staff and Director of Public Affairs. said in a statement. “The 2021 rules present a balanced approach that promotes business flexibility while curbing the risk of misclassification.”