The Department of Labor on Oct. 11 issued a proposed rule that would expand the definition of who is an independent contractor under the Fair Labor Standards Act (FLSA).
NATSO continues to analyze the proposed rule, which would relax the Trump Administration’s Independent Contractor status rule that was seen as being more favorable to allowing a company to consider a worker as an independent contractor rather than an employee.
The NLRB is pursuing a more expansive joint employer standard that will require indirect or unexercised control over terms and conditions of employment to trigger joint employer status for employers.
The Coalition for a Democratic Workforce (CDW), of which NATSO is a member, opposes the rule and requested a 60-day extension of the public comment period. CDW said that given the expansive nature of the proposed standard and the complexity of issues relating the standard’s impact on employers and other entities in different industries, “employers and other parties will require more time to engage in a meaningful evaluation of the proposed standard and to formulate comments that will benefit the Board when giving further consideration to the proposed rule and during any development of a final rule.”
CDW is encouraging employers to contact the NLRB urging the Board to abandon the proposed standard.
Link here for a more detailed explanation of the rulemaking and a letter to the Board explaining the harmful outcomes if the standard goes into effect.
The Small Business Administration is hosting a roundtable on the NLRB’s joint employer rulemaking on Thursday, October 20, from 1-2:30pm (ET). The purpose of the roundtable is to gather specific small entity input on the proposed rule. NATSO members interested in attending should RSVP to Janis.Reyes@sba.gov, who will send participation details.
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