By By Vincent Salandro | NAHB
A coalition of more than 200 business groups, including the NAHB, Associated Builders and Contractors, Associated General Contractors of America, and state and local Chambers of Commerce, submitted formal comments opposing the U.S. Department of Labor’s proposed rule updating the independent contractor test.
“Not only does the proposed rule ignore the realities of how businesses and independent contractors work together in 21st century America, but, in so doing, it ignores the preference many workers have to remain independent contractors,” the group wrote in its comment letter submitted to Jessica Looman, principal deputy administrator for the U.S. Department of Labor’s Wage and Hour Division.
The proposed rule, published in October, would update the test for determining whether a worker is an employee under the Fair Labor Standards Act (FLSA). The rule is intended to combat employee misclassification and would update the test for independent contractor status under the FLSA that went into effect in early 2021.
