Final rule further complicates classification process for small businesses
WASHINGTON, D.C. (Jan. 9, 2024) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, issued the following statement regarding the U.S. Department of Labor’s (DOL) final rule on the classification of independent contractors:
“The Department of Labor intends to further complicate an already confusing classification process for small business owners,” said Beth Milito, Executive Director of NFIB’s 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. DOL’s multifactor test will lead to more frequent worker misclassification and frivolous lawsuits. 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.”
In 2021, NFIB supported the DOL’s then straightforward test for determining who is and is not an independent contractor.
The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.