By: Dave Rauf
The DOL’s effort to rescind the final rule runs counter to the realities of the modern economy.
—Evan Armstrong, Founding Member, Coalition for Workforce Innovation
We will continue working with the Administration and Congress to ensure direct sellers are clearly classified as independent contractors under all federal laws.
—Brian Bennett, Vice President of Government Affairs and Policy, Direct Selling Association
An array of business groups are suing the U.S Department of Labor over its decision to rescind a rule that would set parameters for when companies—including direct sellers—could classify workers as independent contractors.
At issue: a Donald Trump administration regulation published in late January, about two weeks before the White House was set to switch hands, making it easier for businesses to classify workers as independent contractors. The rule marked a major victory for the direct selling channel, along with gig economy companies specializing in ride-sharing and food delivery.
By: David Rauf
“Once finalized, it will make it easier to identify employees covered by the Act, while respecting the decision other workers make to pursue the freedom and entrepreneurialism associated with being an independent contractor.”
—Eugene Scalia, Labor Secretary, U.S. Dept. of Labor
“The goal would be to properly classify the field as independent contractors not subject to any test.”
—Will Miller, attorney, Buchlater
Under a new proposed Trump administration regulation, direct selling companies could finally gain some clarity on which workers may be classified as independent contractors.