PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

SBE Council Joins Amicus Brief in CWI et al v. DOL on the Independent Contractor Rule

By at 6 May, 2024, 12:00 pm

On April 26, SBE Council joined seven other business organizations in filing an amicus brief in support of the plaintiffs’ motion for summary judgement in CWI et al v. DOL on the Department of Labor’s (DOL’s) final independent contractor rule. The case is currently pending in U.S. District Court before the Eastern District of Texas. The brief, which you can read here, points out DOL’s flawed approach in finalizing the 2024 rule.

Specifically, the brief addresses why the rule is invalid as it fails to provide fair notice of the conduct necessary to avoid liability; is merely a selective review of case law rather than a reasoned interpretation of statutory text; and provides the agency with maximum enforcement power to regulate in the absence of an employment relationship and to assert FLSA coverage.

Fellow organizations filing the amicus brief with SBE Council include the American Hotel & Lodging Association, Associated General Contractors of America, Association of Bi-State Motor Carriers, Inc., American Bakers Association, Independent Electrical Contractors, National Association of Convenience Stores, and the National Association of Realtors.

Litigation Update: Via the IC Business Coalition

There are five active lawsuits challenging DOL’s final independent contractor rule. The list of lawsuits, and a link to their respective dockets, are below. Colt & Joe Trucking v. DOL is a new suit brought on 4/25.

● CWI et al v. DOL

Warren v. DOL

● Littman et al V. DOL

● Frisard’s Transportation, LLC v. U.S. Department of Labor

● Colt & Joe Trucking LLC v. DOL 

Acting Secretary Su Testifies Before E&W: On May 1, Acting Secretary of the Department of Labor Julie Su appeared in front of the full House Education and the Workforce Committee in a hearing titled, Examining the Policies and Priorities of the Department of Labor. Ms. Su was asked to address the impacts of the IC rule primarily in exchanges from Reps. Joe Wilson (R-SC) (~51:00 minute mark); Kevin Kiley (R-CA) (~2:53:00 minute mark); and Susan Wild (D-PA) (~2:37:00 minute mark). You can view Rep. Kiley’s line of questioning here.

ATA IC Video: The American Trucking Associations (ATA) created a video that details the importance and role of independent contractors in the trucking industry and explains the problems that DOL’s new rule poses for these work opportunities. The video can be found here.

Independent Worker Stories – The Harms of Attacking Entrepreneurship: The Institute for the American Worker is cataloging the stories of independent contractors, whose lives and financial security are threatened due to the intrusive and illegal independent contractor rule. View the stories here.

CALL TO ACTION: The U.S. House passed a Congressional Review Act (CRA) resolution that invalidates the new rule. Now, the Senate must act!

We need the support of entrepreneurs, small business owners and all concerned Americans in contacting their U.S. Senators, urging them to vote for the CRA to invalidate the DOL’s overreach. You can do so by visiting Save Independent Work’s ACTION CENTER here.

 

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