Call to Action

US Department of Labor Proposes Restrictive New Rule That Significantly Limits Independent Contractors

On October 11, 2022, the US Department of Labor (DOL) announced a proposed rule that would rescind the existing pro-small business independent contractor analysis and replace it with a needlessly complicated and restrictive system for determining employee or independent contractor status under the Fair Labor Standards Act (FLSA).

This proposed DOL rule would have dramatic negative impacts on entrepreneurs operating as independent contractors and on small businesses who use independent contractors. The Small Business Association of Michigan has a longstanding position against government restrictions on entrepreneurs wishing to operate as independent contractors.

For context and scale, 59 million people (about 1/3 of the US workforce) did at least some freelance work last year, contributing $1.3 trillion to the US Economy according to a recent survey by Upwork.

Please consider submitting a comment in opposition to the proposed rules. The deadline to do so is November 28, 2022. SBAM has provided more background on our website, along with sample comment language.

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