WASHINGTON, D.C. – On Wednesday, the U.S. Court of Appeals for the Fifth Circuit granted a motion by the U.S. Department of Justice (DOJ) to halt oral argument in a legal challenge (Frisard’s Transp., LLC v. United States DOL) to the U.S. Department of Labor’s (DOL) final independent contracting rule. This move gives the incoming leadership at the DOL a chance to review the case and determine its next steps, instead of moving ahead with oral arguments, which had been scheduled for Feb. 5, 2025.
The rule was introduced in January 2024 and finalized in May. It established a six-factor test to determine whether an individual should be classified as an independent contractor or an employee. This rule has introduced great confusion and uncertainty for independent workers and businesses that depend on the independent contractor model. The Biden-era rule replaced a 2021 rule finalized by the previous Trump administration, the latter of which employed a simpler test that was deemed more favorable to independent contractors and businesses.
Patrice Onwuka, director of the Center for Economic Opportunity at Independent Women, issued the following statement:
“The independence of millions of freelancers, entrepreneurs, and gig workers nationwide hangs in the balance. We are hopeful that the DOJ’s delay is a sign that the Trump administration is reconsidering the Biden administration’s assault on self-employment in America.
“Flexibility is the driving factor for most women who choose to be independent contractors. They are able to balance important priorities such as caregiving and managing health conditions while earning incomes and creating fulfilling careers.
“The Biden administration sought to destroy freelancing and self-employment in an effort to force tens of millions of independent contractors into traditional 9-to-5 employment, regardless of whether their unique situations allow for it. We’ve spoken to countless women, from writers to owner-operator truckers, about how disruptive the Biden rule will be to their livelihoods and lives.
“We hope that, through this case, rulemaking, or executive action, the Trump administration fights for small businesses, workers, and women by undoing the Biden-era independent contractor rule.”
Beth Parlato, Independent Women senior legal advisor, added: “It is welcome news that the Trump Department of Justice sought an abeyance from the court in anticipation of further rulemaking to rescind Biden’s Independent Contractor rule that threatened people’s livelihood and undermined their right to work. We look forward to the Trump administration righting the wrongs of over-burdensome, unfair government regulation.”
Jennifer Oliver O’Connell, a visiting fellow for the Center for Economic Opportunity at Independent Women and an investigative journalist, freelance writer, and entrepreneur, said: “It is excellent news that the United States Department of Labor under President Donald J. Trump plans to roll back the Biden Independent Contractor final rule. Independent professionals, small businesses, and franchisers had great hope with the election of President Trump that he would soon address the regulatory overreach imposed by the last administration against the 64 million who contribute to the engines of the economy, and who only wish to work independently as we choose. We are thankful to President Trump that our hopes have not been dashed, and our voices have been heard.”
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