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DOL Proposal on Independent Contractor Status

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Independent Contractors→ Retirement Savings→

Summary

SIFMA and joint trades provided comments to the U.S. Department of Labor (DOL) on the proposed rule clarifying the worker classification provisions of the Fair Labor Standards Act. The Proposed Rule seeks to codify and clarify Department interpretation applying an ‘economic reality test’ to determine whether workers are employees or independent contractors under the Fair Labor Standards Act (FLSA).

SIFMA signed with: American Securities Association, Financial Services Institute and Insured Retirement Institute.

PDF

Submitted To

DOL

Submitted By

SIFMA, FSI, ISI, ASA

Date

26

October

2020

Excerpt

VIA ELECTRONIC MAIL

October 26, 2020

Cheryl Stanton, Administrator
Division of Regulations, Legislation, and Interpretation
Wage and Hour Division, U.S. Department of Labor
Room S-3502
200 Constitution Avenue NW
Washington, DC 20210

Re: Regulatory Information Number (RIN) 1235-AA34 – Independent Contractor Status Under the Fair Labor Standards Act

Dear Ms. Stanton:

We, the undersigned trade associations, appreciate the opportunity to comment on the U.S. Department of Labor (Department) proposed rule clarifying the worker classification provisions of the Fair Labor Standards Act. (Proposed Rule).1 The Proposed Rule seeks to codify and clarify Department interpretation applying an ‘economic reality test’ to determine whether workers are employees or independent contractors under the Fair Labor Standards Act (FLSA).

Our organizations are the leading trade associations in the financial services sector. Our members provide needed advice and services, often provided by independent financial professionals, to millions of Americans, helping them achieve their financial goals. We are pleased to support the Proposed Rule which will provide greater clarity and certainty for independent contractors and promote consistency. This is particularly important in the financial services sector where the independent business model plays a crucial role in serving small businesses and Main Street Americans who are saving and investing for education and retirement.

The public comment process presents an opportunity for the Department to consider the unique nature of the financial services sector and how the interpretation and application of classification test can impact our ability to serve Main Street, as discussed below. We hope our comments will be helpful to the Department in providing further clarity, specifically regarding application of the control element of the economic reality test to the financial services sector.

1 Regulatory Information Number (RIN) 1235-AA34 – Independent Contractor Status Under the Fair Labor Standards Act. https://www.federalregister.gov/documents/2020/09/25/2020-21018/independent-contractor-status-under-the-fair-labor-standards-act

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