Llame al (888) 572-7520 para hablar con un agente

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.

En la imagen se muestra un camionero

The new Department of Labor rule considers six factors for worker classification:

  1. Opportunity for profit or loss based on management.
  2. Worker and employer investments.
  3. Permanence of the work relationship.
  4. Nature and degree of control.
  5. Integration of the work into the employer’s activity.
  6. 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.

Facebook
Twitter
LinkedIn
WhatsApp
En la imagen se muestra un camión nuevo

How to choose the right truck

When selecting a truck type, cargo size and transportation requirements are key factors Trucks play a central role in the road transportation sector. Therefore, choosing

Read More »

Leave a Reply

Your email address will not be published. Required fields are marked *

Business hours: Monday to Friday from 8:00 AM to 5:00 PM. California time
Leave your number and a member of our company will contact you
Horario de atención: Lunes a viernes de 8.00 AM a 5.00 PM. Hora california

Deje su número y un miembro de nuestra empresa se pondrá en contacto con usted