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FSI Asks Courtroom to Strike Down DOL Unbiased Contractor Rule

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FSI Asks Courtroom to Strike Down DOL Unbiased Contractor Rule

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The Monetary Providers Institute and its coalition companions filed an amended criticism Tuesday towards the Labor Division’s new unbiased contrator rule, which asks the court docket to declare the 2024 rule invalid, prohibit its implementation and permits the 2021 unbiased contractor rule to stay in impact.

FSI filed the amended criticism within the U.S. District Courtroom for the Jap District of Texas together with the Related Builders and Contractors, the American Trucking Affiliation, the Coalition for Workforce Innovation, the Nationwide Retail Federation, the Nationwide Federation of Unbiased Enterprise and the U.S. Chamber of Commerce.

The criticism states that the 2024 rule, which Labor finalized on Jan. 9, is unfair and capricious underneath the Administrative Process Act and likewise violates the Regulatory Flexibility Act.

An FSI spokesperson advised ThinkAdvisor Tuesday in an electronic mail that the amended criticism replaces the earlier criticism filed on Jan. 16, which challenged DOL’s withdrawal of the 2021 unbiased contractor rule.

The brand new amended criticism, the spokesperson mentioned, displays “our considerations with the ultimate DOL rule” and provides new plaintiffs.

The division, in keeping with the amended swimsuit, ”has issued a brand new rule that largely repeats the Division’s earlier errors and fails to treatment the confusion addressed by the 2021 Unbiased Contractor Rule.”

The 2024 rule “repeals the 2021 Unbiased Contractor Rule at present in impact and substitutes an amorphous, imprecise, and unworkable normal for figuring out worker or unbiased contractor standing” underneath the Truthful Labor Requirements Act, or FLSA, the swimsuit states.

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