Lawsuits Challenge New Independent Contractors Rule

A group of freelance writers and editors brought suit Jan. 16 challenging the Department of Labor’s final rule modifying its analysis for determining employee or independent contractor classification under the Fair Labor Standards Act in the District Court for the Northern District of Georgia, Gainesville Division. The writers contend that the rule would label anyone performing services for another company to be deemed an “employee” under essentially any circumstance.

This was followed on Feb. 8 by a complaint for declaratory and injunctive relief filed by a transportation company in the U.S. District Court for the Eastern District of Louisiana contending that the rule is arbitrary and capricious, exceeding the DOL’s statutory authority.

The DOL issued its rule Jan. 10.

NAMIC had filed comments with the DOL in December 2022 opposing the rule as rife with procedural and substantive defects that would lead to disruption in the insurance industry and disserve to consumers and independent contractor agents.