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Reclassification of

Independent Contractors

The reclassification of Independent Contractors emerged in 2019 after national labor unions in California successfully pushed legislation that significantly restricts the ability of an employer to classify workers as contractors instead of employees.  The legislation known as AB5 has devastated the independent contractor community and forced thousands of drivers out of the state or forced them to hire attorneys to obtain their own DOT operating authority. Building upon the momentum of the passage of AB5, Big Labor has come to Washington and has won another effort to force independent contractors to become employees with the hope of turning those employees in to dues-paying union members.

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This new Department of Labor rule replaces a straightforward, common sense approach to classification with a complicated six-factor test to determine whether a worker qualifies as an independent contract.  The six factors are:

 

·     Opportunity for profit or loss depending on managerial skill

·     Investments by the worker and the potential employer

·     Degree of permanence of the work relationship

·     Nature and degree of control

·     Extent to which the work performed is an integral part of the potential employer’s business; and

·     Skill and initiative.

 

These factors, however, are not exhaustive and the rule allows the Department of Labor to consider other relevant factors in making a determination.  For more information on the rule, please see this analysis from the law firm of Nixon Peabody.  

Analysis of the Rule

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We are uniting for the preservation of the Independent Contractor business model.

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Fighting Back

If we all stand together, we can make our voices heard and STOP reclassification from disrupting our supply chain and the economy.

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