U.S. Chamber Praises Pause on Enforcement of Biden-Era Independent Contractor Rule 

WASHINGTON, D.C. -- The U.S. Chamber of Commerce welcomes the Department of Labor decision to pause enforcement of the 2024 Independent Contractor Rule and restore the ability of independent contractors to continue operating and companies to continue engaging them. Litigation over the rule remains pending, including a coalition lawsuit brought by the U.S. Chamber. 

“While the pause is a step in the right direction, we hope the court will follow suit and strike the rule permanently. We sued the Department of Labor because its rule would deprive millions of Americans the freedom to choose to work as an independent contractor. Individuals want to work as independent contractors for all kinds of reasons, including greater work-life balance, the ability to choose when and how to work, and the opportunity to be one’s own boss,” said Marc Freedman, vice president of the U.S. Chamber of Commerce’s Employment Policy Division.  

“This week’s announcement by the Department is another example of how the Trump Administration is reversing growth-inhibiting regulations issued during the Biden administration. The Department’s notice allows business owners to focus on what they do best, which is providing products and services that meet America’s needs through hard work, innovation, and building upon the strength of their local communities.” 

DOL directed its investigators to not apply the Biden-era independent contractor classification regulation in enforcement matters. Instead, DOL will rely on an opinion letter issued during the first Trump Administration that better captures the relationship between independent contractors and the companies that hire them. 

The 2024 rule mandated a seven-factor test to determine whether a worker should be classified as an “employee” or an “independent contractor” and the Chamber’s lawsuit details how the rule, and its heavy bias towards classifying workers as “employees,” threatens the independent contractor model.  When used properly, that model benefits both parties by allowing companies to scale operations up or down, and to retain expertise as needed while providing workers with flexibility and control of their work activities.  

Small businesses join the U.S. Chamber in applauding the Trump Administration’s action. Renee VanHeel, owner of Pay It Forward Processing, moved her business from California to Arizona because of California’s version of the previous administration’s independent contractor rule and spoke out against the DOL’s rulemaking in 2022.   

“President Trump’s action makes me feel that speaking out was worth it, even though I was fearful that the Department of Labor, or their state equivalent, would come after me,” VanHeel said. “Hopefully, the federal courts will put a stake in the heart of the terrible rule that punishes small businesses who want to be independent contractors and those that use independent contractors.”