On Nov. 3, the Signatory Wall and Ceiling Contractors Alliance submitted comments in support of the Department of Labor’s proposed independent contractor rule that would rescind the prior Administration’s rule that made it easier to classify employees in the construction industry and across the economy as independent contractors. The proposed rule replaces this regulation with a well-understood standard ground in 60 years of judicial precedents that SWACCA urged the Labor Department to adopt because it is easier to apply and will make it harder for employers to claim their workers are independent contractors. As you may recall, this proposed rule was necessary after a federal judge in May 2021 invalidated on procedural grounds the Administration’s previous attempt to rescind the problematic independent contractor rule.

SWACCA has long opposed the prior Administration’s independent contractor rule and advocated for its rescission. This advocacy included October 2020 comments SWACCA’s policy team submitted in opposition to the rule when it was originally proposed. SWACCA also filed comments in support of the Biden Administration’s proposed rule to rescind the Trump-era rule back in March 2021.

In its comments submitted Nov. 3, SWACCA notes its support for the proposed rule and states that employers will benefit from the proposed rule’s adoption of the six-factor economic test for determining when a worker is an employee or an independent contractor under the Fair Labor Standards Act. In addition, SWACCA highlights that curbing the growing practice of misclassification in the construction industry is critical to the ability of SWACCA members to compete and provide middle-class wages and benefits while funding the training of the next generation of skilled construction workers. Finally, SWACCA explains that the proposed rule will enhance clarity for employers, workers and enforcement officials, reduce regulatory uncertainty and facilitate more efficient compliance and enforcement of the law.