H.J. Res. 116, a joint resolution providing for Congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Department of Labor relating to “Employee or Independent Contractor Classification Under the Fair Labor Standards Act”
Cost Estimate
As reported by the House Committee on Education and the Workforce on April 5, 2024
H.J. Res. 116, a joint resolution providing for Congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Department of Labor relating to “Employee or Independent Contractor Classification Under the Fair Labor Standards Act”
As reported by the House Committee on Education and the Workforce on April 5, 2024
By Fiscal Year, Millions of Dollars
2024
2024-2029
2024-2034
Direct Spending (Outlays)
0
*
*
Revenues
0
*
*
Increase or Decrease (-) in the Deficit
0
*
*
Spending Subject to Appropriation (Outlays)
0
0
not estimated
Increases net direct spending in any of the four consecutive 10-year periods beginning in 2035?
*
Statutory pay-as-you-go procedures apply?
Yes
Mandate Effects
Increases on-budget deficits in any of the four consecutive 10-year periods beginning in 2035?
*
Contains intergovernmental mandate?
No
Contains private-sector mandate?
Yes, Under Threshold
* = between -$500,000 and $500,000.
Summary
H.J. Res. 116 would disapprove a rule, “Employee or Independent Contractor Classification Under the Fair Labor Standards Act (FLSA),” published in the Federal Register on January 10, 2024, by the Department of Labor (DOL). The rule, which took effect on March 11, 2024, rescinds a January 2021 rule that established a narrower standard for classifying workers as employees rather than as independent contractors under the FLSA. Because the FLSA does not cover independent contractors, enacting legislation to disapprove the rule would reduce the number of workers covered by it. In its analysis of the 2024 rule, DOL estimated that, based on 2017 survey data, independent contractors comprise about 7 percent of the workforce.
