DOL Issues a Final Rule that Complicates Classification of Independent Contractors

Date: January 17, 2024

NFIB opposed the final Independent Contractor rule

NFIB has long opposed changes to the Independent Contractor Standard that would complicate the process for small business owners. NFIB issued the following statement in response to the U.S. Department of Labor’s (DOL) final rule on independent contractor classification: 

“The Department of Labor intends to further complicate an already confusing classification process for small business owners,” said Elizabeth Milito, Executive Director of the NFIB Small Business Legal Center. “Changing yet again the standards that determine whether a worker is an independent contractor will result in the confusion and risk of misclassification that the DOL claims it is trying to alleviate.”  

In 2021, NFIB supported the DOL’s then straightforward test for determining who is and is not an independent contractor. NFIB opposes the new rule, which will make it more difficult for small business owners to comply. 

“DOL’s multifactor test will lead to more frequent worker misclassification and frivolous lawsuits,” said Milito. “This new rule changing the classification standards for independent contractors will damage rather than improve the ability of America’s small businesses to make their businesses as productive as possible.” 

For further guidance on classifying individuals, the NFIB Small Business Legal Center offers a Guide to Independent Contractors to help small businesses determine classification and avoid penalties. 

NFIB supports the protection of, and efforts to further secure, the right of individuals to work as independent contractors and for business owners to choose to lawfully classify workers as independent contractors. Reach out to the Legal Center with additional questions or for more information.  

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