A federal judge reinstated a Trump-era rule that made it easier for businesses to classify workers as independent contractors, Bloomberg law reported. The Trump administration had issued its independent contractor rule on Jan. 6, 2021, and it was set to take effect in March 2021. However, the Department of Labor froze the rule and ultimately put forward a final rule withdrawing it altogether.
The Associated Builders and Contractors lauded the decision by the court in the Eastern District of Texas.
“This decision will provide much-needed clarity for small businesses and the entire construction industry,” said Ben Brubeck, the association’s VP of regulatory, labor and state affairs. “Independent contractors are an essential lifeline to the construction industry, and the Trump-era independent contractor rule will ensure these workers and their clients can continue to thrive and play an important role in economic growth.”
More information on the decision is available from law firm Littler Mendelson.