Business advocates and the US Department of Labor can resume theirs fight for independent contractor regulationsthe 5th US Circuit Court of Appeals ruled on Monday (Coalition against Su).
The litigation began after the Biden administration in 2021 overturned a Trump-era rule on the issue. Business groups challenged that withdrawal, arguing that DOL overstepped its authority. A federal district court judge agreed, and the Biden administration appealed that ruling to the 5th Circuit. The appeals court issued a stay pending the publication of a new rule by the DOL.
Biden’s DOL finalized its own version of the regulations in January, with an effective date of March 11, prompting the 5th Circuit to lift its stay on Monday. at the request of business groups. The court also vacated the lower court’s opinion at the DOL’s request, sending it back for the court to review.
Given this and other litigation related to the new regulations, a court might very well put the next rules on hold, an employment law attorney told HR Dive last month; but with the entry date just weeks away, employers should monitor developments closely, he said.
