On May 6, 2021, the Department of Labor’s Wage and Hour Division withdrew the recently promulgated independent-contractor rule. Only two months after promulgating the rule, DOL delayed the rule’s implementation so the new administration could review it. WLF had reminded DOL that it issued the rule to promote regulatory certainty and delaying the rule would cause regulatory uncertainty in an already tumultuous economic climate. It also challenged the DOL’s consideration of distributional consequences. DOL, however, chose to consider those distributional consequences and stunt economic growth by withdrawing the independent-contractor rule.
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