IANA backs congressional action to overturn independent contractor rule

The Intermodal Association of North America (IANA) has endorsed a move in both houses of Congress to overturn the U.S. Department of Labor's (DOL) final rule that provides guidance on whether a worker is an employee or independent contractor under the Fair Labor Standards Act.

U.S. Rep. Kevin Kiley (R-Calif.) and Sen. Bill Cassidy (R-La.) introduced Congressional Review Act resolutions to repeal the recently adopted "Employee or Independent Contractor Classification Under the Fair Labor Standards Act."

The final rule threatens the livelihood of millions of independent contractors, including the vast majority of intermodal truck drivers, who could be involuntarily reclassified as employees, IANA officials said in a press release.

DOL’s recent rulemaking threatens to eliminate intermodal drivers' freedom to work as independent contractors and the opportunity to invest in and operate their own businesses, said IANA President and CEO Joni Casey.

"Without Congressional action, the DOL’s new regulations will negatively impact the nation’s supply chain by deterring qualified drivers from the industry and worsening existing driver shortages, which will ultimately slow the movement of goods and increase costs for consumers," she said.