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SHRM Statement on Introduction of the Congressional Review Act (CRA) Resolution to Repeal the Independent Contractor Rule

ALEXANDRIA, VA – SHRM Chief of Staff and Head of Public Affairs, Emily M. Dickens, released the following statement on the Introduction of the Congressional Review Act (CRA) Resolution to Repeal the U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) final rule, effective March 11, 2024, for determining employee or independent contractor classification under the Fair Labor Standards Act (FLSA).

"SHRM stands in firm support of the CRA's initiative to repeal the recently published worker classification rule under the FLSA and return to the 2021 Rule. We believe that the current rule fosters ambiguity, deterring businesses from extending essential training to independent workers, a detrimental scenario for both parties involved. The 2021 rule struck a balanced approach, promoting business flexibility while curbing misclassification risks.

This pivotal regulation not only offered businesses clear-cut guidelines but also fostered a culture of flexible work arrangements, thereby enriching opportunities for workers. Repealing the existing rule is necessary to restore this equilibrium. Moving forward, SHRM remains dedicated to collaborating with the DOL/WHD and our extensive membership base of nearly 340,000 professionals, and to delivering educational support for seamless compliance. Concurrently, we persist in advocating for bipartisan legislative solutions geared towards modernizing the Fair Labor Standards Act."

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