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SWACCA Files Comments in Support of WHD’s Rescission of the Trump-era Independent Contractor Rule

The Signatory Wall and Ceiling Contractors Alliance (SWACCA) submitted comments on the Department of Labor’s (DOL) Wage and Hour Division’s (WHD) proposed rule to rescind the Trump-era final rule amending independent contractor status under the Fair Labor Standards Act (FLSA).

In its comments, SWACCA notes that it has consistently opposed efforts to make it easier to convert workers from employees to independent contractors, while highlighting that SWACCA submitted comments in October 2020 on the proposed Trump-era independent contractor rule. SWACCA also reiterated its support for codifying the six-factor economic reality balancing test, which SWACCA contends DOL does not have the authority to rewrite into a narrower test that will leave fewer workers protected under the FLSA.

Importantly, SWACCA also notes that this is not an issue that is limited to the unionized construction industry. If this rule were allowed to take effect, SWACCA explains that taxpayers would bear significant costs. That is because independent contractor arrangements result in reduced tax revenues to federal, state, and local governments for programs ranging from social security to unemployment insurance.

You can read the letter in its entirety here.

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