The trucking industry faces challenges in retaining its current driver workforce, particularly due to policy changes that could disrupt the independent contractor model—a critical component of the industry. The independent contractor model offers flexibility and autonomy, making it an attractive choice for many drivers. Proposed changes to worker classification rules threaten this model and could significantly impact the trucking industry’s ability to retain drivers.

Key Objectives:

1. Protect the Independent Contractor Model:
   • The independent contractor model is integral to the trucking industry, enabling drivers to operate as their own business entities.
   • Proposed regulations, such as the Department of Labor’s (DOL) final worker classification rule, could redefine many independent contractors as employees, altering the fundamental structure of the industry.
2. Oppose Efforts Like Julie Su’s Nomination:
   • Julie Su’s nomination for Secretary of Labor raised concerns due to her support for stricter worker classification rules under the DOL’s authority.
   • Industry stakeholders argue that such policies could lead to significant disruptions in the trucking workforce.
3. Support the Congressional Review Act Resolution (H.J. Res. 116, S.J. Res. 63):
   • These resolutions aim to overturn the DOL’s final worker classification rule, safeguarding the independent contractor model.
   • By cosponsoring these resolutions, lawmakers can prevent regulatory changes that threaten to reclassify independent contractors as employees.

Impact on Trucking:

• Driver Retention: The independent contractor model provides drivers with the flexibility to choose their schedules and operations, which is a major factor in their retention.
• Operational Costs: Reclassifying independent contractors as employees would impose significant costs on trucking companies, potentially leading to reduced capacity and increased consumer prices.
• Industry Stability: Preserving the independent contractor model ensures the stability of the trucking workforce, preventing disruptions to supply chains and the broader economy.

Next Steps:

• Advocacy: Industry leaders must continue to advocate for the preservation of the independent contractor model through legislative and public channels.
• Legislative Support: Policymakers should support resolutions such as H.J. Res. 116 and S.J. Res. 63 to overturn the DOL’s rule and protect the rights of independent contractors.
• Engagement: The trucking industry must engage with drivers to highlight the benefits of the independent contractor model and demonstrate the potential negative impacts of reclassification.

By protecting the independent contractor model, the trucking industry can ensure it retains its current driver pool, supports economic stability, and sustains its critical role in supply chain operations.

Congressional Review Act Resolution (H.J. Res. 116, S.J. Res. 63)

The Congressional Review Act (CRA) Resolutions H.J. Res. 116 and S.J. Res. 63 are legislative measures introduced in the 118th Congress to nullify a specific rule issued by the Department of Labor (DOL) concerning the classification of workers under the Fair Labor Standards Act (FLSA).

Background:

In January 2024, the DOL published a final rule titled “Employee or Independent Contractor Classification Under the Fair Labor Standards Act,” which became effective on March 11, 2024. This rule established criteria for determining whether a worker is classified as an employee or an independent contractor under the FLSA. The classification is significant because employees are entitled to protections such as minimum wage and overtime pay, whereas independent contractors are not.

Purpose of the Resolutions:

H.J. Res. 116 and S.J. Res. 63 were introduced to disapprove and nullify the DOL’s rule under the CRA. The CRA allows Congress to review and potentially overturn federal regulations by passing a joint resolution of disapproval. If such a resolution is enacted, the rule in question is treated as though it had never taken effect.

Legislative Progress:

• House of Representatives: H.J. Res. 116 was introduced by Representative Kevin Kiley (R-CA) on March 6, 2024. It was referred to the House Committee on Education and the Workforce, which reported it favorably on April 5, 2024. Congress.gov
• Senate: S.J. Res. 63 was introduced by Senator Bill Cassidy (R-LA) on March 6, 2024, and referred to the Senate Committee on Health, Education, Labor, and Pensions. Congress.gov

Support and Opposition:

Proponents of the resolutions argue that the DOL’s rule imposes burdensome criteria that could reclassify many independent contractors as employees, potentially disrupting industries that rely on flexible work arrangements. For instance, a coalition letter from various organizations urged support for these resolutions, stating that the rule “will invite unnecessary litigation and uncertainty for the tens of millions of workers that derive income as independent contractors.”

Opponents contend that the DOL’s rule provides necessary clarity and protection for workers who may be misclassified, ensuring they receive appropriate labor rights and benefits.

Implications:

If either resolution is enacted, the DOL’s rule would be nullified, maintaining the previous standards for worker classification under the FLSA. This outcome would preserve the existing criteria used to determine employee versus independent contractor status, affecting various sectors of the economy.

As of November 2024, both resolutions are under consideration, reflecting ongoing debates over labor classifications and the balance between worker protections and business flexibility.