American Trucking Associations (ATA) officials said the organization supports the Department of Labor’s proposed ruling clarifying the definition of employee under the Fair Labor Standards Act (FLSA) regarding independent contractors.
The proposed rule, per the Department of Labor, adopts an economic reality test to determine a worker’s status as an FLSA employee or an independent contractor; identifies and explains two core factors, specifically the nature and degree of the worker’s control over the work, and the worker’s opportunity for profit or loss based on initiative and/or investment; identifies three other factors that may serve as additional guideposts in the analysis: the amount of skill required for the work; the degree of permanence of the working relationship between the worker and the potential employer; and whether the work is part of an integrated unit of production; and
advises that the actual practice is more relevant than what may be contractually or theoretically possible in determining whether a worker is an employee or an independent contractor.
“(Department of Labor) Secretary Scalia understands that many Americans choose the independent contractor model — including hundreds of thousands of owner-operators in the trucking industry — because it expands their opportunities to earn and empowers them to choose the hours and routes that suit their individual needs and lifestyle,” ATA President and CEO Chris Spear said. “This proposal is about giving working Americans the freedom to pick the occupation and flexibility they desire, and we thank Secretary Scalia for putting it forward.”