May 6, 2021
Washington, DC—The National Consumers League (NCL), America’s pioneering consumer and worker advocacy organization, welcomes yesterday’s withdrawal of the Trump Administration’s “Independent Contractor Rule,” which would have too narrowly defined who is an “employee” under the Fair Labor Standards Act (FLSA).
“The Trump Administration’s ‘Independent Contractor Rule’ would have been bad for American workers, especially women and those who toil in low-wage industries. It would have made it easier to classify workers like construction workers, farmworkers, Uber- and Lyft- drivers, janitors, and care givers as ‘independent contractors,’ denying them the rights and benefits ’employees’ have. It would have left workers already vulnerable to wage theft and safety risks even more at risk,” said NCL Executive Director Sally Greenberg.
In its announcement about the impending rule’s withdrawal, the U.S. Department of Labor noted that the FLSA requires employees be paid “at least the federal minimum wage for every hour they work and overtime compensation at not less than one-and-one half times their regular rate of pay for every hour over 40 in a work week.” Withdrawing the new rule preserves these essential worker rights and other protections granted by the FLSA.
DOL rightfully noted that independent contractor designations are not necessary to provide workers with flexible hours—something proponents of the new rule had suggested. “Employment and flexibility are not mutually exclusive,” said DOL.
About the National Consumers League
The National Consumers League, founded in 1899, is America’s pioneer consumer organization. Our mission is to protect and promote social and economic justice for consumers and workers in the United States and abroad. For more information, visit www.nclnet.org.