The National Retail Federation today issued the following statement from Senior Vice President of Government Relations David French regarding the finalization of the Department of Labor’s independent contractor classification rule.

“Retailers, along with countless other employers, maintain a wide range of business relationships with independent contractors, including billing, facility maintenance, data analysis, delivery, marketing and other critical services. These relationships have become even more important and common in a post-COVID-19 environment.

“The administration is repealing common-sense rules that clearly articulate the difference between employees and independent contractors. NRF vehemently opposes a change in this important area of law, which is both unwarranted and unnecessary. This decision will only foster confusion, endless litigation and reduced innovation.

“As bad as this rule is for retailers specifically and employers generally, it is far worse for the millions of workers nationwide who cherish the opportunity to engage in independent work.”

NRF submitted comments on the proposed rule in December 2022 and voiced opposition when it was released in October 2023.