WASHINGTON — The Trump Administration is announcing its intention to rescind Biden-Era independent contractor rules.
On Thursday, the U.S. Department of Labor released its spring regulatory agenda, which included rescinding the rule.
American Trucking Associations
“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,” said Chris Spear, American Trucking Associations (ATA) president, CEO. “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.
Owner-Operator Independent Drivers Association
“We support the Trump Administration’s goal of protecting independent contractors provided they reject the American Trucking Associations’ backdoor attempt to mandate dangerous speed limiter devices on truckers,” said Todd Spencer, president, OOIDA. “The Department of Labor should follow the lead of the Department of Transportation in determining that speed limiter devices are detrimental to the safety of all motorists. We encourage the Department of Labor to listen to actual independent contractors in the trucking industry, not the corporate megacarriers seeking to exploit them.”
Independent Contractors
According to the ATA, for more than 90 years, independent contractors have played a vital role in trucking, providing flexibility for drivers and capacity for the supply chain. More than 350,000 professional truck drivers choose to run their own businesses, set their own hours, and chart their own routes.
“Julie Su and the Biden Administration tried to rip that freedom away, ignoring reality and disregarding the livelihoods of the very people who keep America moving,” Spear said. “We thank the Trump Administration for standing up for the rights of independent truckers and restoring a clear, fair standard that respects reality. Trucking is not a one-size-fits-all industry, and Washington bureaucrats have no business dictating how [people] pursue their careers. This is a positive step for our economy, for the supply chain, and for the countless entrepreneurs who embody the very spirit of free enterprise.”
Department of Labor Proposals
According to a DOL press release, the department advanced a set of high-priority actions designed to reduce unnecessary burdens on employers and employees, with proposals addressing issues surrounding pharmacy benefit managers, independent contractors, joint employers, and others, including:
- Employee or Independent Contractor Classification under the FLSA: The department will examine the circumstances under which a worker should be classified as an employee or independent contractor for the purpose of federal wage and hour requirements.
- Improving Transparency into Pharmacy Benefit Manager Fee Disclosure: Pursuant to President Trump’s April 15 Executive Order, “Lowering Drug Prices by Once Again Putting Americans First,” the department will look at ways to improve transparency around the direct and indirect compensation PBMs receive from employer-sponsored health plans
- Transparency in Coverage: The department will examine ways it can improve market transparency in pricing and cost-sharing information for consumers.
- Prudence and Loyalty in Selecting Retirement Plan Investments and Exercising Shareholder Rights: The department will consider the extent to which fiduciaries may prioritize environmental, social, and governance factors in investment decisions.
- Heat Injury and Illness Prevention in Outdoor and Indoor Work Settings: The department is continuing to examine how to establish standards specifically related to heat-related injury and illness prevention.
- Joint Employer Status under the Fair Labor Standards Act: The department will look at the circumstances under which a business can be held liable as a joint employer.
- Defining and Delimiting Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees: The department will determine whether certain salaried employees are exempt from FLSA minimum wage and overtime requirements.
- Adverse Effect Wage Rate Methodology for the Temporary Employment of H-2A Nonimmigrants in Non-Range Occupations in the U.S.: The department will consider updates to the methodology used to calculate the prevailing wage for H-2A workers.
- H-2A Temporary Agricultural Employment of Foreign Workers in Nonimmigrant Status: The department proposes to rescind certain burdensome requirements adopted under the Biden administration, many of which are currently enjoined as unlawful, for growers using the H-2A program for agricultural labor.
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
