The US Department of Labor asserts that the aim of the new rule is to preserve workers' fundamental rights
On January 9, 2024, the US Department of Labor announced a new rule amending guidelines to determine employee or independent contractor classification under the Fair Labor Standards Act (FLSA). The new rule took effect today, March 11. However, efforts are underway to overturn it.
Last week, lawmakers in the House of Representatives and the Senate introduced resolutions aimed at halting the rule and reverting to previous regulations. However, the resolution must be approved to enact the change, so for now, the new rule stands.
The new Department of Labor rule considers six factors for worker classification:
- Opportunity for profit or loss based on management.
- Worker and employer investments.
- Permanence of the work relationship.
- Nature and degree of control.
- Integration of the work into the employer’s activity.
- Worker’s capacity and initiative.
Understanding the new rule
The Owner-Operator Independent Drivers Association (OOIDA) sent an update to its members to clarify the effects of the new rule. OOIDA emphasized that the new rule does not adopt the ABC Test or California’s AB5, simplifying contractor classification for truckers. The rule underscores that no single factor is decisive, and classifications are made on a case-by-case basis.
The US Department of Labor asserts that the aim of the new rule is to preserve workers’ fundamental rights and provide consistency to entities regulated by the Fair Labor Standards Act. It stresses that misclassifying employees as independent contractors can lead to denial of fundamental rights such as minimum wage, overtime pay, and other labor protections, supporting the implementation of the new rule. Therefore, it established a FAQ page to help explain the new rule, preventing further misunderstandings.
The story of the first car race in Paris: a historic hit in 1894
Paris stands not only as a cultural and artistic epicenter but also as a pioneer in car racing In the history of automotive racing, Paris
Top states for driving in the United States in 2024
A WalletHub study compared all 50 states to determine the best driving conditions Road safety and quality are central concerns for drivers. And while the
Briefs: marijuana reclassification, vehicle fees, and climate grants
The trucking industry goes through new legislation, taxes and subsidies Questions about the proposed reclassification of marijuana The Owner-Operator Independent Drivers Association (OOIDA) supports the
Impact of traffic pollution: study reveals increase in blood pressure
A study from the University of Washington in Seattle reveals that the main cause of significant increases in blood pressure might be traffic-related gasses A
The benefits and careers of a Commercial Driver’s License
Having a CDL opens multiple doors within the trucking and transportation industry Having a Commercial Driver’s License (CDL) opens multiple doors within the trucking industry,
Sharing the road with a truck: steps to ensure your safety
Caution around blind spots and anticipating truck maneuvers are essential to ensuring everyone’s safety Truck drivers face significant challenges on the road due to their