The U.S. Chamber of Commerce has expressed approval for the Department of Labor's decision to pause enforcement of the 2024 Independent Contractor Rule. This move allows independent contractors to continue their operations and companies to engage them without interruption. The rule is still subject to ongoing litigation, including a lawsuit filed by the U.S. Chamber.
"While the pause is a step in the right direction, we hope the court will follow suit and strike the rule permanently," said Marc Freedman, vice president of the U.S. Chamber of Commerce’s Employment Policy Division. He emphasized that many Americans prefer working as independent contractors for reasons such as work-life balance and autonomy.
The Department's recent announcement reflects efforts by the Trump Administration to reverse regulations introduced during Biden's presidency. Freedman noted that this decision enables business owners to focus on their core activities, contributing to local communities through innovation and hard work.
The Department of Labor has instructed its investigators not to enforce the Biden-era classification regulation. Instead, they will refer to an opinion letter from the first Trump Administration that better defines relationships between independent contractors and hiring companies.
The 2024 rule included a seven-factor test for classifying workers as either "employees" or "independent contractors." The U.S. Chamber argues that this test leans heavily towards labeling workers as employees, potentially undermining the independent contractor model.
Small businesses have joined in support of this action by the Trump Administration. Renee VanHeel, owner of Pay It Forward Processing, relocated her business from California due to similar state regulations and opposed DOL's rulemaking in 2022. "President Trump’s action makes me feel that speaking out was worth it," VanHeel remarked, expressing hope that federal courts will ultimately overturn what she considers a punitive rule against small businesses.
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