WASHINGTON, May 5—Associated Builders and Contractors Vice President of Regulatory, Labor and State Affairs Ben Brubeck released the following statement regarding the U.S. Department of Labor’s announcement that it will withdraw the independent contractor rule:

“While we certainly saw this coming, it is still disappointing to see the Department of Labor chose to rescind the independent contractor final rule, which would have provided much needed clarity for the contracting community, employers and employees. The withdrawal will harm small businesses and the entire construction industry. This move is not only in apparent violation of the Administrative Procedure Act, but also brings independent contractors—an essential lifeline to the construction industry—back to the inadequate standards previously in place, which could damage the U.S. economy and deprive many independent workers of opportunities to succeed.

“ABC has already filed a federal court complaint challenging the Department of Labor’s unlawful delay of the rule’s effective date beyond March 8. We intend to amend our complaint to contest the department’s claimed authority to withdraw the rule, which compounds the department’s violation of APA requirements.”