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Legislative Update from NCISS Legislative Committee and Lobbyit

L g l tiv fix t DOL ul
Many industry groups, including N ISS, are hoping or a legisla ve fi to this terrible rule. Several legislators have
signaled that they will file legisla on to quash the rule, or to amend it. The N ISS egisla on team drafted a letter to the
Senate and House abor ommittee hairs and Ranking Members, which was sent to them in mid-January. mong other
things, our letter urged the ommittee members to care ully consider the poten al consequences o the ruling. e
requested that they work with us to find a solu on which balances the protec on o worker rights with the unique needs
o the private inves gator and security pro essions. N ISS con nues to seek a legisla ve solu on to this issue.

L tig ti Ag t DOL Rul g

US ourt o ppeals/Fifth ircuit
legal challenge was filed in the US ourt o ppeals or the Fifth ircuit to the US abor epartment’s worker
classifica on rule, seeking to block the agency rom making it harder to classi y workers as independent contractors
across a range o industries including trucking, construc on, and the gig economy. The oali on or ork orce
Innova on, ssociated Builders and ontractors, and the Financial Services Ins tute filed a mo on to revive their
previous li ga on, in which a ederal court in Te as blocked the abor epartment’s 2022 e ort to revise classifica on
standards. s in 2022, they’re arguing the agency didn’t ollow the required administra ve procedures or passing new
ederal regula ons. The groups are asking the US ourt o ppeals or the Fifth ircuit to send their previously stayed
case back to the US istrict ourt or the astern istrict o Te as to consider a resh challenge to the rule, which the O
published in final orm on January 10, 2024.

US istrict ourt, Northern istrict o Georgia
Four reelance writers and editors on Jan. 16 filed a lawsuit (Warren v. U.S. Department of Labor, filed in the US istrict
ourt or the Northern istrict o Georgia) against the US epartment o abor, claiming the Biden administra on’s new
rule on when workers can be classified as independent contractors is vague and uncertain and should be struck down
because it violates the US ons tu on. The plain s are reelance writers and editors Kim Kavin, Jen Sionger and
eborah brams Kaplan rom New Jersey, and Karon arren, based in Georgia. They are the ounders o Fight For
Freelancers, a coali on o more than 2,500 reelancers in pro essions ranging rom wri ng to truck driving. The online
organiza on was ormed to contest policies — such as ali ornia’s B-5 and the epartment o abor’s rule — that the
group alleges make it more difficult or them to work as independent contractors.

Beacon enter – US istrict ourt/Tennessee
The Beacon enter, a non-profit think-tank, has filed a ederal lawsuit against the epartment o abor. The lawsuit
claims that that the department's "independent contractor rule" threatens the livelihoods o reelancers. The rule
"replaces a straightforward two- actor test with a vague si - actor test or determining whether a worker is a reelancer
or an employee, will orce reelancers into employment rela onships that they neither want nor need."
The enter is represen ng Tennessee reelance journalists Margaret ittman and Jenni er hesak in the lawsuit.

U.S. hamber o ommerce
N ISS egisla on hair Jim Zimmer recently contacted aryl Jose er, ecu ve ice resident and hie ounsel or the
US hamber o ommerce. Mr. Jose er agreed that this is a terrible ruling by O , and the hamber is considering
pursuing li ga on. He put us in touch with Stephanie Maloney, hie o Sta & ssociate hie ounsel at US hamber o
ommerce i ga on enter, who is spearheading their li ga on e ort.

Zoom mee ng was held with Stephanie Maloney. Represen ng N ISS were d jaeb, isa Turley and mysel . Ms.
Maloney was very recep ve to our concerns, which are shared among hundreds o pro essions.
Stephanie Maloney shared that the US hamber o ommerce had done e tensive research and published a paper on
the use o independent contractors, which was submitted to the epartment o abor in ecember 2022, but
un ortunately the O did not take the arguments into considera on.

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