Modest Revisions in Independent Contractor Rule Could Favor Trucking Sector

By Ken Miller, Senior Transportation Journalist

Over a year after its initial proposal, the Department of Labor has unveiled its final independent contractor rule. Analysts suggest that the changes are largely superficial, but there are a few elements that might positively influence the trucking industry.

This rule will serve as the framework for the Wage and Hour Division in resolving related classification disputes.

Shortly after the rule’s release in the Federal Register, the American Trucking Associations (ATA) voiced strong opposition, with ATA President Chris Spear remarking, “There’s nothing more un-American than for the government to eliminate the freedom of individuals to choose work arrangements that align with their needs and aspirations.”

 

Key Considerations for Worker Classification

The Biden administration’s rule outlines six essential criteria for determining whether a worker qualifies as an employee or an independent contractor, echoing those from the previous Trump administration’s framework. These criteria include:

1. The degree to which the services provided are essential to the employer’s operations.

2. The level of investment the contractor has made in tools and facilities.

3. The extent of control exerted by the employer.

4. The potential for profit and loss.

5. The level of initiative, judgment, or foresight required for the independent operation’s success.

6. The stability of the working relationship.

The final rule also allows for consideration of additional unspecified factors.

While the Trump administration’s approach elevated the importance of control and profit opportunities, the Biden administration treats all six criteria as equally important, which may offer more flexibility for independent contractors in the trucking sector.

Another significant concern raised in the original proposal was the notion that if an employer required independent contractors to follow specific legal or safety protocols, it could imply a degree of control, potentially impacting their classification.

In conclusion, although the regulatory environment remains largely unchanged, these minor adjustments in the final independent contractor rule could yield some benefits for the trucking industry as it grapples with the complexities of worker classification.

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