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ABC and Others Update Lawsuit Challenging DOL Withdrawal of Trump-era Independent Contractor Rule

The Associated Builders and Contractors, the Financial Services Institute, and the Coalition for Workforce Innovation have updated their lawsuit challenging DOL’s decision to withdraw the Trump-era DOL independent contractor rule. The rule would have made it easier for businesses to classify their workers as independent contractors—who, unlike employees, are not covered by federal minimum wage and overtime protections. These groups initially sued over the SWACCA-advocated freeze of the rule’s effective date in the early days of the Biden Administration.  Now that the rule has been fully repealed, they have revised their lawsuit to object to the repeal of this final regulation. They argue that “the Delay Rule and the Withdrawal Rule are both procedurally and substantively flawed” and “based on the improper exercise of political power by the Department.”  You can read their revised lawsuit here.

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