Financial Services Institute Requests that DOL Extend Comment Period on Independent Contractor Proposal
The Financial Services Institute is asking the U.S. Department of Labor to extend the comment period for an Independent Contractor Rule Proposal released by the Department of Labor on Oct. 11, 2022.
The Financial Services Institute is asking the U.S. Department of Labor to extend the comment period for an Independent Contractor Rule Proposal released by the Department of Labor on Oct. 11, 2022.
The DOL filed the proposed rule under the Fair Labor Standards Act that would replace the existing 2021 test used to determine worker classification as either an independent contractor or an employee.
“We are thoroughly reviewing the proposed rule as it is imperative to preserve independent financial advisors’ ability to choose to be independent contractors and provide the same level of certainty and clarity the existing rule provides independent advisors,” said Dale Brown, president and chief executive officer of Financial Services Institute. “We look forward to constructively engaging with DOL staff to ensure advisors’ independent contractor status is protected. However, the limited time between the DOL’s town halls, when it filed the rule with the Office of Management and Budget, and today’s release raises concerns about how much consideration, if any, the Department gave to the feedback it received from American workers and employers.”
FSI submitted a request to extend the comment period to Jan. 12, 2023.
“With the proposal of this new rule, DOL continues a back-and-forth on the issue of worker classification, creating regulatory tumult just as those affected had adjusted to the reinstatement of WHD’s previous rule on this same issue – “Independent Contractor Status Under the FLSA”4 – on March 14, 2022 (retroactively reinstated to March 8, 2021),” said David T. Bellaire, executive vice president and general counsel for Financial Services Institute. “FSI is concerned that the short length of the comment period and timing of its completion (after Thanksgiving) limits the public’s ability to provide adequate input. This length of time does not allow for adequate data and study of the problem, issues, and the necessary cost and economic impact analysis.”
The new rule would replace a Trump administration regulation that allowed workers who own their own businesses or have the ability to work for competing companies to be treated as contractors.
Comments on the proposal were due by November 28, but the DOL has already extended the comment period 15 days to December 13.
