Labor Department’s New Rule Faces Backlash from Trucking Industry

The Department of Labor has recently introduced a new regulation to clarify the distinction between employees and independent contractors, prompting strong opposition from the trucking sector.

Set to come into effect March 11, this rule reverses a policy established during the Trump administration and reinstates prior standards for worker classification.

According to the Department of Labor, “The new ‘independent contractor’ rule reinstates the multifactor analysis that courts have utilized for years, ensuring a comprehensive evaluation of relevant factors in determining a worker’s status as either an employee or an independent contractor.” This analysis includes six key factors, such as the potential for profit or loss, the worker’s financial investment, the stability of the work relationship, employer control over the worker, the essentiality of the work to the employer’s business, and the skill and initiative of the worker.

The previous 2021 Independent Contractor Rule focused on five criteria but primarily depended on just two: the degree of control the worker holds and their opportunities for profit or loss.

These regulatory changes were primarily influenced by the rapid expansion of the gig economy, encompassing platforms like Uber, Lyft, and DoorDash, as well as California’s legislation mandating the classification of independent contractors—including trucking owner-operators—as employees.

The trucking industry’s response has been swift and emphatic. Todd Spencer, President of the Owner-Operator Independent Drivers Association, expressed concerns about the continuous changes in classification rules, stating, “Truckers are frustrated with the ever-changing regulations that do not address their concerns. This shifting landscape creates uncertainty, complicating their ability to run their businesses.”

Moreover, Chris Spear, President and CEO of the American Trucking Associations, voiced that “Nothing is more un-American than the government limiting individuals’ freedom to choose their work arrangements.” He emphasized that over 350,000 truckers opt for independent contracting due to the economic opportunities and flexibility it offers. He criticized the new rule for complicating what was once a clear standard and endangering the livelihoods of many truckers nationwide.