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ABC Condemns Biden Administration’s Proposals to Rescind DOL’s Joint Employer and Independent Contractor Final Rules

March 11, 2021

Today, the U.S. Department of Labor Wage and Hour Division announced proposals to rescind the Trump DOL joint employer and independent contractor final rules. The public has until April 12 to comment on both proposals.

ABC issued a statement, saying “It is disappointing that the Biden administration announced proposed rules to rescind both the joint employer and independent contractor final rules. ABC strongly supported both final rules because they promised to promote economic growth in the construction industry by providing greater clarity and removing unnecessary burdens on construction industry employers.”

DOL Independent Contractor Final Rule:

ABC is on record as strongly supporting the Trump DOL’s independent contractor January 2021 final rule, which clarifies the WHD’s interpretation of independent contractor status under the Fair Labor Standards Act and promotes certainty for employers, independent contractors and employees.

However, on March 2, the Biden administration announced a final rule that delays the Trump-era independent contractor final rule’s effective date from March 8 to May 7, 2021. On Feb. 24, ABC submitted comments in opposition to the DOL’s proposal to delay the effective date because the final rule provides urgently needed clarification of the independent contractor standard applicable under the FLSA.

On March 11, the DOL announced it plans to rescind the Trump-era final rule. The public can comment on the proposal until April 12.

Read more about ABC’s position on the Trump DOL independent contractor final rule.

DOL Joint Employer Final Rule:

ABC applauded the Trump administration for issuing the 2020 DOL joint employer final rule, which promised to make the joint employment test more narrow and focused. However, on Sept. 8, a U.S. District Court for the Southern District of New York judge ruled that parts of the DOL’s joint employer final rule are illegal. ABC intervened in the case, in part to defend the construction industry against unwarranted attacks on the industry’s long-established methods of doing business by the state plaintiffs. 

On March 11, the DOL announced it plans to rescind the final rule.  The public can comment on the proposal until April 12.

Read more about ABC’s position on the Trump DOL joint employer final rule.

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