The Society for Human Resource Management announced it supports a recently announced Congressional Review Act resolution in the US Congress to overturn a new rule on how independent contractors are misclassified.

Announced Jan. 9, the rule uses a multifactor “economic reality” test to determine when a worker is an independent contractor. It is scheduled to take effect March 11 and would rescind an earlier Trump-era independent contractor rule.

“SHRM stands in firm support of the [Congressional Review Act] initiative to repeal the recently published worker classification rule under the FLSA and return to the 2021 rule,” Emily Dickens, SHRM chief of staff and head of public affairs, said in a press release.

“We believe that the current rule fosters ambiguity, deterring businesses from extending essential training to independent workers, a detrimental scenario for both parties involved,” Dickens said. “The 2021 rule struck a balanced approach, promoting business flexibility while curbing misclassification risks. This pivotal regulation not only offered businesses clear-cut guidelines but also fostered a culture of flexible work arrangements, thereby enriching opportunities for workers. Repealing the existing rule is necessary to restore this equilibrium.”

The Congressional Review Act resolutions were put forward this week by Sen. Bill Cassidy, R-Louisiana, and Rep. Kevin Kiley, R-California.