6 . Whether the individual uses specialized skills in performing the work . If the individual uses specialized skills that contribute to the business-like initiative , then the individual is more likely an independent contractor . The final rule explicitly states that an individual with a commercial driver ’ s license ( CDL ) should be recognized as a specialized skill .
The final rule is going to be challenged in the courts . The Coalition for Workforce Innovation ( CWI ) already has a pending case before the Fifth Circuit Court of Appeals challenging the withdrawal of the independent contractor rule issued by the Trump administration . That challenge will be enjoined with a specific challenge to this regulation . It is also possible the American Trucking Association ( ATA ) and companies like Uber and Lyft may also challenge this rule in the courts .
CLDA plans to reach out to the individuals we met with at the Office of Management and Budget ( OMB ), Office of Information and Regulatory Affairs ( OIRA ), and the DOL . We want to recognize that they listened to some of the objections to the proposed rule we raised and made changes that moved in the direction we recommended for the final rule . We will also state that the final rule needs more revisions to make it a workable regulation . Still , we appreciate their making some movement on some of the more troublesome provisions of the proposed rule .
Legal Challenges on the Authority of Regulatory Agencies
The United States Supreme Court will hear oral arguments on January 17 in a case that will challenge the doctrine of “ Chevron deference .” The doctrine of the “ Chevron deference ” basically says that the courts should defer to the judgment of regulatory agencies in administering laws where there are gray areas and the intent of the law is not clear .
This doctrine was put in place after a 1984 case where Chevron challenged a Natural Resources Defense Council ruling , and the Court ( NRDC ) found in favor of the NRDC . The case before the Supreme Court is Relentless , Inc . vs . The Department of Commerce , where herring fishing companies are suing the Department of Commerce over one of its agencies , the National Marine Fisheries Service , requiring the fishing companies to pay for inspectors to board their ships .
The thinking is that if the court rules in favor of the fishing companies , it will end the decades-long practice of the courts deferring to regulatory agencies . Former Labor Secretary Scalia wrote in an op-ed in the Wall Street Journal that this ruling that eliminating the doctrine could have a bearing on legal challenges to the Department of Labor ’ s rule on independent contractors . This could potentially have a bearing on several other business challenges to rules from federal agencies .
Update to the Fair Labor Standards Act
Congresswoman Elise Stefanik ( R-NY ) introduced the Modern Worker Empowerment Act ( H . R . 5513 ) to update the Fair Labor Standards Act and the National Labor Relations Act to clarify the classification of independent contractors . The CLDA has submitted to Congresswoman Stefanik and the Committee on Education and Workforce , which has jurisdiction over the legislative improvements to the bill , for their consideration . CLDA met with both Congresswoman Stefanik ’ s and the committee ’ s staff to discuss our proposed changes to the bill and received favorable feedback from both offices . The committee is expected to take action on the Stefanik legislation sometime early in 2024 . CLDA plans to come to Washington in early
10 customized logistics & delivery Magazine I winter 2024