Upcoming DOL Rule: A Potential Shift for the Trucking Industry

September 20th, 2023

In the ever-evolving landscape of labor laws, one development has been capturing significant attention in the specialized market of Owner Operators and Motor Carriers: the Department of Labor's (DOL) proposed changes to the guidance on the classification of employees and Independent Contractors.  As experts in this market, we closely monitor these developments and are committed to providing our Insurance Agents and their Motor Carrier clients with the latest insights and updates.

The Notice of Proposed Rulemaking (NPRM)

On October 13th, 2022, the DOL published a Notice of Proposed Rulemaking (NPRM) to revise its guidance on determining who is an employee or Independent Contractor under the Fair Labor Standards Act (FLSA).  The NPRM has proposed the rescission of a prior rule, known as the Independent Contractor Status Under the Fair Labor Standards Act (commonly referred to as the 2021 IC Rule), which was published on January 7th, 2021, and came into effect on March 8th, 2021.

Understanding the 2021 IC Rule

The 2021 IC Rule was a significant milestone in labor law as it clarified the standard for determining employee versus Independent Contractor status.  This rule was primarily seen as recognizing the entrepreneurial spirit of workers who choose to function as Independent Contractors.  However, in an unexpected turn of events, the DOL withdrew the 2021 IC Rule on May 6th, 2021.  The rationale for this withdrawal was cited as the rule's tension with the text and purpose of the FLSA, as well as relevant judicial precedents.

The NPRM's Impact

The NPRM has been proposed to reduce the risk of worker misclassification, thereby providing more certainty for businesses and workers.  The final rule, expected to be published next month, could significantly impact many industries.  The trucking industry, which relies heavily on Owner Operators, is one such sector that could be deeply affected by these changes.

What This Means for the Trucking Industry

Given the potential changes, businesses within the trucking industry must stay informed and prepared.  The final rule's impact on Owner Operators and Motor Carriers could be significant, altering how businesses structure and operate.  As a company with deep expertise in this market, we are committed to providing our Insurance Agents and their Motor Carrier clients with high-quality insurance products and sound risk management solutions.

Looking Forward



Innovation and adaptability are cornerstones of our industry, and as such, we remain confident in the resilience of Owner Operators and Motor Carriers amidst these legislative shifts.  We are dedicated to keeping our Insurance Agents and their Motor Carrier clients informed and providing the essential coverage options needed to operate confidently, even in times of change.

As we continue to monitor the situation, we encourage businesses and individuals within the trucking industry to familiarize themselves with the proposed changes.  Stay tuned for further information on the final rule as it's released, and know that we are here to support you every step of the way as we navigate these changes together.

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