WASHINGTON – Today, Education and Labor Committee Republican Leaders Reps. Virginia Foxx (R-NC) and Fred Keller (R-PA) issued the following statement criticizing the Department of Labor’s (DOL) proposed rules to withdraw two Trump administration rules, one which determined joint-employer status under the Fair Labor Standards Act (FLSA) and the other clarifying the classification of independent contractors and employees under the FLSA:
"Under the Trump administration, DOL provided workers and job creators with clear, precise, and common sense standards to determine joint-employer status and whether a worker is classified as an independent contractor or employee under the FLSA. Both the Trump administration rules were common sense regulations which promoted entrepreneurial opportunity and flexibility. Unfortunately, today’s proposed rules seek to eliminate these important standards which provided clarity to workers and employers. If finalized, these rules will allow the Biden administration to re-enact harmful Obama-era regulations which were confusing, unworkable, and overly broad edicts that created uncertainty, confusion, and legal jeopardy for small businesses and entrepreneurs.
"At a time when businesses are struggling to stay afloat and millions of workers are desperate for workforce opportunities, the last thing we should be doing is muddying the waters with a rehashed, ambiguous joint-employer standard and removing a common sense test for classifying workers with clarity and predictability. We strongly urge President Biden to rescind these proposed rulemakings and instruct DOL to allow the current joint-employer and worker classification rules to remain in place, which will allow the U.S. economy to be an engine of growth, opportunity, and prosperity for all Americans."
BACKGROUND: President Trump’s joint-employer rule detailed a four-factor test for determining joint employment which ensured employers clearly understood their responsibilities under the FLSA. The Trump administration’s worker classification rule adopts an economic realities test, with a focus on actual practices when establishing a worker’s classification as employee or independent contractor. If finalized, today’s proposed rules would eliminate clear and precise standards and harm workers, businesses, and consumers.