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On May 1, the U.S. Department of Labor announced that it will pause enforcement of the 2024 Employee or Independent Contractor Classification Under the Fair Labor Standards Act final rule in current enforcement matters while the agency reviews this regulation. ABC, its Southeast Texas chapter, the Coalition for Workforce Innovation and five other organizations are currently challenging the 2024 final rule in federal court.
ABC is pleased that the DOL will not apply the Biden administration’s 2024 final rule’s analysis in current enforcement matters. This is welcome news for the many construction employers who depend on legitimate independent contractors to provide specialized skills, entrepreneurial opportunities and stability during fluctuations of work common to the industry, ABC said in a statement.
The Biden administration’s 2024 final independent contractor rule is confusing, vague and unworkable, and harms construction workers classified as independent contractors because they will lose crucial opportunities for work.ABC continues to support reinstatement of the Trump administration’s 2021 final rule, which simplified and clarified the factors for determining when a worker is an independent contractor versus an employee.
Following the DOL’s announcement, ABC’s general counsel Littler Mendelson issued an article, “DOL Hits Pause on Enforcement of Biden-Era Independent Contractor Rule, Suggests New or Changed Rule Forthcoming,” which includes the following information:
What's the DOL's New Guidepost?
“While the DOL’s review and reconsideration of the rule continues, the Field Assistance Bulletin notes that, effective May 1, 2025, the DOL will enforce the FLSA in accordance with Fact Sheet #13 (from July 2008, not March 2024) and as further informed by the reinstated Opinion Letter FLSA2019-6, which addresses classification in the context of virtual marketplace platforms.”
What Now for Employers?
“Employers should carefully review Fact Sheet 13 (from July 2008) because it varies significantly from the 2024 rule that DOL investigators or others may have been considering as controlling. Employers should also recall the dozens of different standards for independent contractor status under other employment laws, including those at the state and sometimes local level, and remain vigilant in complying with those laws while the DOL continues its review and likely dramatic altering of independent contractor criteria under the FLSA. Experience shows that those other employment laws also have shifting regulations or even statutory changes, so employers should not wait for a ‘quiet time’ in the world of worker classification to evaluate their policies and practices because that time may never arrive.”
For additional guidance beyond the field assistance bulletin, workers and employers can contact the Wage and Hour Division at its toll-free helpline, 866-4US-WAGE (487-9243).
ABC members are encouraged to reach out to counsel with any questions regarding the DOL’s pause on enforcement of the 2024 independent contractor rule.
On May 5, as a part of the America at Work tour, U.S. Department of Labor Secretary Lori Chavez-DeRemer and U.S. Rep. Juan Ciscomani, R-Ariz., visited an ABC member jobsite and participated in an Arizona Builders Alliance-led roundtable discussion in Tucson, Arizona.
The group toured ABC member Chasse Building Group’s project to build Pima Community College’s Building and Construction Technologies training center as well as Pima’s other programs that train students in automotive technology and advanced manufacturing.
Secretary Chavez-DeRemer and Rep. Ciscomani then joined the Arizona Builders Alliance in a roundtable discussion focused on workforce shortages in the construction industry and policies that reduce unnecessary red tape to empower workers and businesses. ABA members also emphasized ABA members’ commitment to safety and spoke about the importance of legal pathways for workers in the construction trades, such as expanding visa programs.
“With strong growth in the construction industry thanks to President Trump’s America First policies, it’s critical the DOL continues our mission to upskill American workers by partnering with local leaders to fill these in-demand jobs,” said Secretary Chavez-DeRemer. “I enjoyed learning firsthand how educators and businesses in Tucson have developed pathways to successful, good-paying careers in construction and building trades.
“I am incredibly grateful to my good friend, Secretary Lori Chavez-DeRemer, for her leadership, commitment to empowering our workers, support for workforce development efforts and for taking the time to meet with educators, business leaders and employees in my district,” said Ciscomani. “Secretary Chavez-DeRemer is a fantastic partner, and I look forward to continuing working with her to deliver on our promise to America’s workforce.”
ABC’s Free Enterprise Alliance has launched an issue advocacy campaign in Missouri, Kansas, Ohio and the Washington, D.C. metro area to educate elected officials and the public on Sen. Josh Hawley’s, R-Mo., Pro-Worker Framework for the 119th Congress that includes sections of the ABC-opposed Protecting the Right to Organize Act and the Warehouse Worker Protection Act.
On March 4, Hawley, along with Sens. Bernie Moreno, R-Ohio, Corey Booker, D-N.J., Gray Peters, D-Mich., and Jeff Merkley, D-Ore., introduced S. 844, the Faster Labor Contracts Act, which would impose unrealistic, arbitrary deadlines requiring employers to reach an agreement in first contract negotiations with newly elected unions or face “binding interest arbitration,” which eviscerates “voluntary agreement,” a primary tenet of U.S. labor law. Under mandatory arbitration, contracts would be imposed on workers, employers and unions with no vote on the final product. Mandatory arbitration would deprive both employers and employees of property rights without the requisite due-process safeguards.
ABC and the ABC-led Coalition Democratic Workplace released statements opposing the bill.
Watch the ad here.
The U.S. Small Business Administration Office of Advocacy, the watchdog for small businesses in the regulatory process, recently launched the Red Tape Hotline.
Small businesses can use the hotline to voice their concerns about federal regulations that negatively affect their operations. According to the Office of Advocacy, it has received and reviewed 96 submissions from small businesses since its inception.
On April 30, SBA issued a summary of its accomplishments during the first 100 days of the Trump administration, stating, “In the first 100 Days of the Trump-Vance Administration, Advocacy has prioritized cutting red tape for small businesses. Advocacy has already delivered significant accomplishments in these first 100 days.
“Since January 20, 2025, Advocacy has cut $48.1 billion in regulatory burden in the first 100 days, compared to $0 in President Biden’s first 100 days, $4.1 billion in the first 100 days of President Trump’s first administration, and $6.8 billion in President Obama’s first 100 days.”
Learn more about the SBA’s Office of Advocacy.
On April 23, ABC urged the U.S. Environmental Protection Agency and U.S. Army Corps of Engineers to streamline the federal permitting process under the Clean Water Act while protecting America’s navigable waters from pollution in comments submitted as part of the Waters Advocacy Coalition.
The comments were submitted in response to the EPA and USACE’s request for feedback regarding how the agencies can better ensure clear and consistent rules for the regulated community and bring the agencies into full compliance with the U.S. Supreme Court’s holding in Sackett v. Environmental Protection Agency.
ABC’s comments reiterated support for a clear and consistent definition of “waters of the United States” subject to CWA regulation and permitting that complies with Sackett and included the following recommendations:
The EPA and USACE are also holding an initial public listening session on May 14 virtually and in person in Charleston, West Virginia, and a listening session for small businesses on May 19 virtually and in person in Washington, DC.
A second public listening session has yet to be scheduled and will be available on the EPA’s website.
On April 23, President Donald Trump signed an executive order aimed at overhauling federal workforce development efforts.
The order directs the U.S. Department of Labor, U.S. Department of Education and U.S. Department of Commerce to review and modernize federal workforce programs, focusing on administrative reforms to improve participant experiences and aligning programs with the needs of emerging industries. The agencies are directed to develop a comprehensive workforce strategy to achieve these goals within 90 days.
The executive order also includes a goal of supporting over 1 million government apprenticeships annually by expanding apprenticeships to new industries, improving efficiency and enhancing connections between registered apprenticeships and the education system. The agencies are directed to submit a plan to do so within 120 days.
The initiative seeks to address labor shortages, specifically citing a 447,000-person workforce shortage in construction.
ABC and contractor members continue to take a leading role in upskilling the construction workforce, with chapters offering over 450 government-registered apprenticeship programs and members investing $1.6 billion in workforce training through an all-of-the-above approach.
For more information, see the fact sheet.
On April 23, the U.S. Department of the Interior issued alternative permitting processes in response to President Donald Trump’s prior declaration of a National Energy Emergency, with the goal of reducing the federal permitting process for covered energy projects to no more than 28 days.
Covered projects include crude oil, natural gas, coal, critical minerals and more, excluding solar and wind energy projects.
The DOI issued new procedures for the National Environmental Policy Act, Endangered Species Act and National Historic Preservation Act.
Legal challenges to these policy changes are expected.
For more information, see the DOI’s announcement.
On April 15, President Donald Trump signed Executive Order 14275, Restoring Common Sense to Federal Procurement, directing significant revisions to the Federal Acquisition Regulations System with the goal of simplifying and streamlining federal procurement. The White House released an accompanying fact sheet and press release with the order.
The order directs the Office of Federal Procurement Policy within the Office of Management and Budget to amend the FAR to remove provisions that are not required by law and deemed unnecessary to support simplicity and usability in federal procurement or protect economic and national security interests.
This process, referred to as the Revolutionary FAR Overhaul, will be completed within six months. The OFPP will coordinate with the FAR Council to implement the RFO.
Additionally, the order directs all agencies with supplemental procurement regulations to work with the OFPP and FAR Council to ensure their rules are aligned with the RFO’s changes.
Lastly, the order directs the OFPP and FAR Council to consider adding regulatory sunset provisions to nonstatutory FAR rules, directing that these rules will expire four years after issuance unless renewed by the FAR Council.
On March 27, the U.S. Department of Justice launched the Anticompetitive Regulations Task Force to advocate for the elimination of anticompetitive state and federal laws and regulations that undermine free market competition and harm consumers, workers and businesses.
“Realizing President Trump’s economic Golden Age will require unwinding burdensome regulations that stifle free market competition. This Antitrust Division will stand against harmful barriers to competition whether imposed by public regulators or private monopolists,” said Assistant Attorney General Abigail Slater of the DOJ’s Antitrust Division. “We look forward to working with the public and with other federal agencies to identify and eliminate anticompetitive laws and regulations.”
The DOJ’s release also states, “On Jan. 31, President Trump signed Executive Order 14192 declaring ‘the policy of the executive branch’ to be that federal agencies should ‘alleviate unnecessary regulatory burdens placed on the American people.’ Consistent with this policy, on Feb. 19, President Trump signed Executive Order 14219 directing agencies to ‘initiate a process to review all regulations’ and identify regulations that, among other things, ‘impose undue burdens on small businesses and impede private enterprise and entrepreneurship.’ Consistent with longstanding practice, the Antitrust Division will support federal agencies’ deregulatory initiatives by sharing its market expertise on regulations that pose the greatest barriers to economic growth.”
The task force is particularly interested in seeking input about laws and regulations that make it more difficult for businesses to compete effectively, especially in markets that have the greatest impact on American households, including:
The task force invites public comments to identify laws and regulations that raise barriers to competition. Comments can be submitted at regulations.gov; the deadline is May 26. ABC will submit comments.
To learn more, visit the Anticompetitive Regulations Task Force.
On March 21, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network announced it is issuing an interim final rule that removes the beneficial ownership information reporting requirements under the Corporate Transparency Act for U.S. companies and persons. FinCEN’s statement follows a Feb. 27 announcement that it was ceasing enforcement of the CTA while it crafted a new set of regulations ahead of the March 21 reporting deadline.
While the interim final rule is not permanent, the announcement clarifies any confusion on reporting requirements and whether companies will still need to file their BOI. In January, ABC joined more than 100 trade associations to request relief from the CTA.
While the new rule alleviates the need to file, this relief is only temporary. So long as the CTA statute remains in place, a future administration could rewrite the rules to be more expansive. For this reason, ABC strongly supports H.R. 425, the Repealing Big Brother Overreach Act, which would repeal the CTA and relieve American small business owners from these burdensome reporting requirements and criminal penalties.
For more information, read the Interim Final Rule: Questions and Answers and visit the BOI website. FinCEN is accepting written comments on this interim final rule until May 27, 2025.
ABC encourages members and small business owners to consult with counsel about BOI reporting.
Background
On Jan. 1, 2021, Congress enacted into law the CTA, which establishes a new framework for the reporting, maintenance and disclosure of beneficial ownership information in order to better enable critical national security, intelligence and law enforcement efforts to counter money laundering, the financing of terrorism and other illicit activity.
ABC, along with a coalition of small business organizations, submitted a letter to congressional leadership expressing concerns on the amendments incorporating the CTA into the 2021 National Defense Authorization Act, stating the enactment of the CTA would decrease privacy protections and slow the economic recovery of Main Street businesses.
ABC responded to Treasury’s FinCEN notice of proposed rulemaking seeking public input on how best to implement the reporting requirements of the CTA, as well as the CTA’s provisions regarding FinCEN’s maintenance and disclosure of reported information in comments.
ABC’s comments noted that the framework prescribed by the CTA will require millions of small businesses, including nearly every employer with 20 or fewer employees, to report to FinCEN certain personal information of their beneficial owners and update that information periodically throughout the life of the business.
ABC also argued that America’s small businesses—which make up most of ABC’s members—are typically not staffed or equipped to understand and comply with reporting obligations similar to those under the CTA. However, per the CTA, failure to comply can result in significant fines and imprisonment for these small business owners.