The Texas Public Policy Foundation filed objections to two proposals of the United States Department of Labor (“DOL”) that seek to scrap Trump Administration rules that help businesses survive and prosper.

The Independent Contractor Rule established straightforward “core factors” for determining whether a person providing services is an “employee” or an “independent contractor” for purposes of minimum wage and overtime. In comments filed with DOL, TPPF argued that withdrawing the Rule would result in more confusion and a greater administrative burden on employers, especially for small business employers. See comment.

In turn, the Joint Employer Rule, provides guidance on which employers are considered joint employers for purposes of the Fair Labor Standards Act. Creating a user-friendly and understandable four-factor test for joint employment, the Rule gives specific guidance and clarity to employers. Contesting the Biden proposal to rescind the Rule, TPPF noted that the rescission would result in needless ambiguities, confusion, and regulatory burdens. See comment.

Robert Henneke, TPPF’s General Counsel and Director of the Center for the American Future, said, “The Biden Administration’s proposed withdrawal of the Independent Contractor and Joint Employer rules will make matters worse for both employers and employees and has no rational basis.”

Ted Hadzi-Antich, Senior Attorney, observed, “The shoddy manner in which the proposed rule rescissions were made is flat-out illegal under the Administrative Procedure Act.”

Attorney Jeremy Burkhart noted, “Other than rank speculation, DOL failed to provide a reasonable justification for its proposed actions.”