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US Chamber sends letter to stop new independent contractor rule

March 18, 2024

The US Chamber of Commerce sent a letter to US Senators and House members to encourage them to reject the US Department of Labor’s new final rule covering independent contractor misclassification. The letter was also signed by 22 organizations including the American Trucking Associations, Associated Builders and Contractors and the International Warehouse Logistics Association.

“The new rule is confusing, difficult to apply and will invite unnecessary litigation and uncertainty for the tens of millions of workers that derive income as independent contractors,” according to the US Chamber of Commerce’s letter.

Included in the new rule is a multifactor “economic reality” test to determine when a worker is an independent contractor. It rescinds an earlier Trump-era independent contractor rule from three years ago. The final rule was announced Jan. 9 and took effect March 11.

Such a new rule is unnecessary given the previous rule worked relatively well, according to the letter. It also argued the new rule will invite unnecessary litigation and harm small business. In addition, the chamber argued the new rule seeks to limit independent and flexible work opportunities.

The chamber called on members of Congress to approve recently introduced Congressional Review Act resolutions to overturn the new rule. Republican lawmakers announced the Congressional Review Act resolutions earlier this month. The chamber has also signed on to a lawsuit challenging the new rule.