The Department of Labor (DOL) has announced that the enforcement of the 2024 independent contractor rule will be paused while it undergoes departmental review. This decision comes amid concerns from small business owners about the complexities introduced by the rule in classifying workers as independent contractors.
Beth Milito, Vice President and Executive Director of NFIB’s Small Business Legal Center, expressed relief at this development. “The DOL’s 2024 rule intensified the stress and confusion of the classification process for small business owners and independent contractors,” she said. The NFIB is pleased with the DOL's decision to refrain from using the 2024 rule in enforcement efforts, opting instead for a standard that offers clearer guidance to both small business owners and independent contractors.
NFIB had opposed the DOL's 2024 final rule on independent contractors, participating in a lawsuit filed in the U.S. District Court for the Eastern District of Texas to challenge it. The organization argued that enforcing such complications made it more challenging for small businesses to utilize independent contractors effectively.
The NFIB Small Business Legal Center is actively involved in protecting small business owners' rights through legal actions across various courts, including more than 40 cases at federal and state levels and proceedings before the U.S. Supreme Court.
