Opposition to NPRM to Withdraw Final Rule – RIN 1235-AA34

Wayne Schooling • April 9, 2021

April 9, 2021

 

Ms. Amy DeBisschop

Division of Regulations, Legislation, and Interpretation, Wage and Hour Division (WHD)

U.S. Department of Labor

Room S-3502

200 Constitution Avenue, NW

Washington, DC 20210

 

Re: Opposition to NPRM to Withdraw Final Rule – RIN 1235-AA34

 

Dear Ms. DeBisschop,


On behalf of the NorthAmerican Transportation Association (NTA), a transportation association representing the combined interests of all our transportation-related companies in the United States.


I am writing to express our opposition to the Department of Labor’s proposal to withdraw the final rule

on Independent Contractor Status under the Fair Labor Standards Act, RIN 1235-AA34.


NTA’s roster is comprised of over 3,895 intrastate and interstate companies (both for-hire and private) who utilize over 19,480 drivers including another 828,195 motor carriers who subscribe to our electronic newsletter, Hi-Way Hi-Lites.


It is estimated that there are over 3.5 million truck drivers in the U.S. Of that, one in nine are independent contractors. For over 35 years, the prevailing business model for motor carriers was to supplement their business needs in their busy seasons by the utilization of independent contractors. The majority of these independent contractors are small, and minority-owned. This business model is indispensable in this industry.


One must remember, that every large company in the transportation industry started with just one truck, this was the American dream for many. These small business owners invest a considerable amount of money in a tractor and/or trailer. With the advent of using non-diesel trucks in the near future this cost investment will certainly increase.


Each independent contractor makes a conscious decision to remain an independent contractor, but also has the freedom to work when he wants to work and when. They can enter into multiple contractual arrangements. This permits the independent contractor to make daily operating decisions as to their availability for the industry. The final rule offered much-needed guidance, clarity, and consistency for the transportation industry

 

In summary, the NTA urges the Department to refrain from withdrawing the final rule established under RIN 1235-AA34. The independent contractor model supports vital motor carrier operations. This model has served both the industry and drivers well for many years.

 

Thank you for allowing NTA to share its views on the Department’s proposal to withdraw the final rule on Independent Contractor Status under the Flair Labor Standards Act.

 

Please let me know if you or your staff needs any further information.  

 

 

Sincerely,

 

Wayne Schooling, CPSA

President & CEO

Content Disclaimer: Due to the constantly changing nature of government regulations, it is impossible to guarantee the total and absolute accuracy of the material contained herein or presented. NorthAmerican Transportation Association (NTA) cannot and does not assume any responsibility for omissions, errors, misprinting or ambiguity contained. NTA shall not be held liable in any degree for any loss, damage or injury caused by any such omission, error, misprinting or ambiguity present. It is made available with the understanding that NTA is not engaged in rendering legal, accounting or other professional service. If legal advice or other expert service is required, the services of such a professional should be sought.

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