WASHINGTON, D.C. – The U.S. Department of Labor’s Wage and Hour Division has proposed a new rule to determine when a worker is classified as an independent contractor or an employee under the Fair Labor Standards Act and related federal laws. Independent Women’s Center for Economic Opportunity issued the following statement applauding the Department of Labor’s proposed independent contractor rule, which will expand opportunity and freedom for America’s growing independent workforce.

Patrice Onwuka, director of Independent Women’s Center for Economic Opportunity, said: 

“On the precipice of Women’s History Month, the Trump administration is delivering a big win for women by protecting flexible work in America. We applaud the Department of Labor for rescinding the Biden-era rule that introduced great confusion and complexity into the question of whether a person is an independent contractor. The previous rule would have effectively restricted flexible work, a blow to women’s labor force attachment. The new proposed rule returns to the simpler standard enacted during the first Trump administration that provided greater certainty for independent contractors and the businesses that hire them.

“This workforce issue is of great importance. Women value the flexibility that independent contracting provides to balance earning incomes with raising children, caregiving for parents, and other priorities. They are increasingly leaving traditional 9-to-5 jobs for independent work for flexibility. Many have been fearful that the hardship that ensued in California, following similar restrictions on independent contracting, would spread nationwide.

“We look forward to amplifying the voices of those in support of this rule and working with the Department of Labor to see this rule enacted.” 

The proposed rule would rescind the 2024 final rule addressing the classification of independent contractors, replacing it with a definition similar to the one adopted by the department in 2021. The proposed rule would apply an “economic reality” test to determine a worker’s classification and identify two “core factors” to help determine whether workers are in business for themselves: The nature and degree of control over the work and the worker’s opportunity for profit or loss based on initiative and/or investment.

See more from the Center for Economic Opportunity on supporting freedom and flexibility for independent contractors: 

###

www.independentwomen.com

Independent Women’s trusted experts, analysis, and data enable us to drive informed conversations to build support for better policy solutions.

Independent Women’s Center for Economic Opportunity aims to educate the public about how government policies impact people’s opportunities for economic development and upward mobility.


Independent Women®’s unique, persuasive methods and trusted brand shape public preferences, policies, and movements to create a better future for everyone.