Last week, the U.S. Department of Labor (DOL) released its regulatory agenda. Much to the delight of independent professionals, contractors, and small businesses everywhere, the 2024 Biden Independent Contractor rule was on the list for rescission and removal.
This action is part of President Donald Trump’s February 19 executive order directed to the heads of “all executive departments and agencies” to identify regulations that could be deemed unlawful and to take action to repeal them. So, along with the Biden DOL IC rule, many other regulations are potentially on the path for elimination.
The regulatory overview on the Biden DOL IC rule reads,
The 2024 IC Rule took effect on March 11, 2024. However, the 2024 IC Rule is the subject of five separate legal challenges. The Department intends to rescind the 2024 IC rule and is considering how it will proceed with respect to independent contractor classification under the FLSA employee or under the FLSA.
This is a win on all fronts, especially for those who desire more independence and freedom to pursue their business interests without government overreach or draconian restrictions that hinder economic growth. After Trump was sworn in as president, the administration’s Department of Justice signaled that it would take no further action to prosecute the five pending lawsuits that had been filed against the Biden IC rule. In May, the DOL further indicated that it would cease enforcement of the 2024 IC rule and issued new guidance, which instructed its field staff to “no longer apply the 2024 Rule’s analysis when determining employee versus independent contractor status in FLSA investigations.”
The removal of this rule is also indicative of the Trump administration’s determination for Congress to do the work of passing laws that benefit all Americans, rather than foster reliance on regulatory fiat and litigation to determine the economic fate of employers, employees, and business owners.
The Modern Worker Empowerment Act has been viewed as a positive step in that direction. Should it be voted into law, the act would not just codify an independent contractor standard but could eliminate the back-and-forth regulatory landscape that has created uneven ground for independent professionals and businesses, like owner-operator trucking, with each changing administration. While truckers are generally supportive of the act, such as female owner-operators IWFeatures interviewed for the series Behind the Wheel: Women Truckers Fight for Freedom, the Owner-Operator Independent Drivers Association (OOIDA) has voiced opposition to a provision in the Modern Worker Employment Act, which states that “safety standards” would not be considered control. The OOIDA has warned that this provision could create a loophole that could be used by the larger trucking concerns to force owner-operators to equip their trucks with safety technology like speed limiters.
The act is currently under review in the Health, Employment, Labor, and Pensions (HELP) Senate committee. The legislative tracking site GovTrack gives the act a less than 10% chance of passage. Many organizations that fight for worker freedom support this bill, including our sister organization, Independent Women’s Voice.
The American Trucking Association President Chris Spear has given full-throated approval to this movement to rescind the Biden IC rule.
By moving to rescind the Biden-era rule on independent contractors, the Trump Administration is rejecting a reckless, job-killing scheme finalized by Acting Labor Secretary Julie Su. That rule would have wiped out choice, crushed opportunity, and sidelined hundreds of thousands of truckers who fuel our economy. We look forward to continuing our participation in the process to repeal this rule, which will be a victory for truckers, for the economy, and for common sense.