Washington—The American Trucking Associations commended the U.S. Department of Labor for issuing a notice directing agency investigators to not apply the Biden-era independent contractor rule in enforcement matters. This action lays the groundwork for restoring the first Trump Administration’s definition for independent contractors, which brought clarity and order to the law in this area.
“We welcome today’s announcement that the Department will no longer use the Biden-era independent contractor rule to determine whether an individual is an employee or contractor under the Fair Labor Standards Act,” said ATA President & CEO Chris Spear. “This is a crucial first step toward returning to the common-sense standard set forth in President Trump’s first term, which protected the freedom of individuals to choose work arrangements that best suit their needs and fulfill their ambitions. We look forward to further progress on this issue and will continue to advocate for the 350,000 truckers nationwide who choose to operate independently for the economic opportunity it creates and flexibility it provides.”
The trucking industry has relied on independent contractors since the inception of interstate trucking, and court decisions over the last nine decades have continually reaffirmed the legitimate role independent contractors play in the economy.
Last year, independent contractors came under fire when the Biden Administration radically rewrote their classification, replacing a straightforward definition with an opaque and deliberately confusing standard designed to fuel frivolous litigation and deny self-employed individuals the freedom of choice to work as independent contractors.
ATA has strongly opposed the independent contractor rule since it was first proposed, joined a broad coalition of organizations filing a lawsuit against it, and backed a legislative effort led by Representative Kevin Kiley (R-California) and Senator Bill Cassidy (R-Louisiana) to overturn the rule. ATA also released a video featuring the personal stories of independent truckers who have been affected by this rule, and ATA’s Women In Motion Council compiled a booklet of testimonials by women independent contractors, which was used at a hearing by Representative Kiley as the foundation of a powerful line of questioning of then-Acting Labor Secretary Julie Su.