The American Bakers Association (ABA) is disappointed in the U.S. Department of Labor’s decision to withdraw the Trump Administration’s rules clarifying independent contractors under the Fair Labor Standards Act. ABA supported the previous Administration’s rule as it brought consistency in applying the economic realities test and provided a clear framework for structuring their independent business operations.
“For more than seven decades, companies in the baking industry have contracted with independent contractors to sell, distribute, and merchandise the manufacturers’ products,” said Robb MacKie, ABA President and Chief Executive Officer. “It is disappointing to see the Department of Labor withdraw the independent contractor rule as it provided much-needed clarity to the industry. It also penalizes the entrepreneurs who are integral to our nation’s food supply.”
ABA submitted comments opposing the withdrawal of the independent contractor rule on April 13, 2021.