DSA-supported lawsuit challenges President Biden’s attempt to roll back Trump’s rule

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.