NDA calls for rethink on Independent Contractor Rule
19 December 2022
The US National Demolition Association (NDA) has submitted comments to the Department of Labour (DOL) on the proposed rule to change the process for classifying employees under the Fair Labour Standards Act (FLSA).
Under the proposed rule, the DOL would return to a “totality of the circumstances” analysis to evaluate the economic realities of the relationship between a worker and a company, rescinding the existing rule which was established last year.
Addressing the issue in its latest newsletter, the NDA said this new analysis would make it more difficult for individuals to operate as independent contractors.
In a letter to Amy DeBisschop, director of regulations, legislation and interpretation at the DOL’s Wage and Hour division, the association said it opposes the proposed rule due to its complexity, potential legal ramifications for employers, and burdensome administrative costs.
It added: “The demolition industry opposes the DOL’s proposed rule and believes it is a step in the wrong direction for both employers and workers,” and said the decision to rescind the 2021 rule “will only increase uncertainty for employers and lead to costly litigation and administrative costs for small businesses down the road.
“NDA urges the DOL to pursue an independent contractor regulation which strikes the appropriate balance in protecting the rights of employers and workers while ensuring workers have the ability to pursue employment opportunities that work best for their career.”
As a result, it has urged the DOL to draft a final rule which sets clear and sensible parameters for determining the classification of independent contractors, similar to the rule issued under the previous administration in 2021.
The NDA represents almost 500 US and Canadian companies offering demolition and demolition-related services and products.