“ These changes are more positive than the DOL ’ s originally proposed rules ,” says Cossack . “ The version the department originally proposed would have severely restricted the use of ICs under federal minimum wage and overtime laws . Nevertheless , it still makes using ICs to respond to customers ’ needs more difficult than it was previously . The definition of an IC is still very convoluted . This rule puts a complicated six-pronged economic realities test in place that determines whether an individual is an employee or an independent contractor . The DOL has the full discretion to enforce this test , and its interpretation depends upon the facts and circumstances of each case .”
The new rule change is not the final word on the definition of an independent contractor and sets up another round of challenges from those depending on ICs . “ The rule will be challenged in the courts ,” predicts Cossack , pointing to others already joining the association ’ s fight . “ The Coalition for Workforce Innovation ( CWI ) already has a pending case before the 5th Circuit Court of Appeals challenging the withdrawal of the independent contractor rule issued by the Trump administration . It is also possible the American Trucking Association ( ATA ) and companies like Uber and Lyft will challenge this rule in the courts . In addition , we will be reaching out to the individuals we formerly met at the Office of Management and Budget ( OMB ), Office of Information and Regulatory Affairs ( OIRA ), and the DOL . We appreciate that they listened to some of the objections we raised in our past meetings and made changes that moved the rule in the direction CLDA recommended . But we will emphasize that more revisions must be made to make it a workable regulation to keep the wheels of commerce moving .”
To see the newly-released rule , go to : https :// public-inspection . federalregister . gov / 2024-00067 . pdf To find the six criteria , go to page 20 . CLDA
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