The U.S. Department of Labor (DOL) announced on Sept. 25 a proposed rule to clarify the distinction between “employee” and “independent contractor” under the Fair Labor Standards Act (FLSA) for consistent public policy definitions.
Regarding California’s Assembly Bill 5 (AB-5) enacted earlier this year, DOL’s proposal would not immediately affect how AB-5 is applied to owner-operators or motor carriers.
A preliminary injunction has so far exempted trucking companies from AB-5.
AB-5 prohibits companies from using independent contractors unless their work is “outside the usual course of the hiring entity’s business.”
This notice of proposed rulemaking (NPRM) is available for review and public comment until Oct. 26, 2020.