AGC urges support for Congressional effort to repeal the U.S. DOL’s independent contractor regulation under the Fair Labor Standards Act that threatens legitimate independent contractor relationships in the construction industry.

On March 7, AGC joined a broad group of organizations urging support for a Congressional Review Act (CRA) resolution to overturn a U.S. Department of Labor (DOL) rule on determining who is an employee or independent contractor under the Fair Labor Standards Act. The DOL rule rescinds a 2021 standard, and replaces it with a more complex analysis for determining employee or independent contractor status.

AGC has opposed the new standard for independent contractor classification and has long called for federal clarification of the independent contractor status and preservation of legitimate independent contractor relationships, such as those that have historically existed in the construction industry. AGC supported the 2021 rule that adopted a consistent, clear and common-sense standard for determining independent contractor status under the FLSA and filed comments opposing the DOL move to withdraw the rule.

The CRA resolution that was introduced in Congress would block the rule and revert back to the 2021 standard and AGC is calling for its immediate passage. While the rule became effective on March 11, 2024 the CRA could bolster separate federal legal challenges to the rule.