TechServe Files Comments Supporting Implementation of Independent Contractor Definition Final Rule

TechServe Submits Comments Supporting DOL Independent Contractor Regulations

TechServe Alliance CEO Mark Roberts on April 12, 2021 submitted comments supporting the implementation of the Department of Labor’s (DOL) Final Rule on the definition of independent contractor. Over 900 individuals and organizations filed comments, including the U.S. Chamber of Commerce and Littler Mendelson Workplace Policy Institute.

As we previously reported, in response to the Trump Administration Notice of Proposed Rulemaking (NPRM), TechServe submitted comments in October 2020 in support of DOL’s proposed independent contractor rule (under the Fair Labor Standards Act) based on an economic reality test. The proposed rule supported by TechServe was finalized and published in the Federal Register on January 7, 2021. The rule was scheduled to go into effect on March 8, 2021. On January 20, 2021, the Biden Administration announced a freeze on several rules, including the IC rule, that were finalized in the last days of the previous administration.

DOL subsequently delayed the effective date to May 7, 2021 and, on March 11 announced its intention to withdraw the rule. On March 26, 2021, a coalition filed a lawsuit against the Administration for violating the Administrative Procedures Act regarding the steps taken to withdraw the IC Rule.

Pending resolution of the lawsuit, DOL is ultimately expected to withdraw the Rule. While this NPRM focuses on the withdrawal of the current rule, we anticipate future rulemaking. The ability for high-tech entrepreneurs to continue to self-select independent contractor status is a TechServe Alliance Legislative and Regulatory priority. We will continue to follow legislative, regulatory, and litigation developments.