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B-333266 May 18, 2021 1 (2021-05-18)

handle is hein.gao/gaoltp0001 and id is 1 raw text is: 1Oo U.S. GOVERNMENT ACCOUNTABILITY OFFICE A Century of Non-Partisan Fact-Based Work 441 G St. N.W. Washington, DC 20548 B-333266 May 18, 2021 The Honorable Patty Murray Chair The Honorable Richard Burr Ranking Member Committee on Health, Education, Labor, and Pensions United States Senate The Honorable Robert C. Bobby Scott Chairman The Honorable Virginia Foxx Ranking Member Committee on Education and Labor House of Representatives Subject: Department of Labor, Wage and Hour Division: Independent Contractor Status Under the Fair Labor Standards Act (FLSA): Withdrawal Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Department of Labor, Wage and Hour Division (Department) titled, Independent Contractor Status Under the Fair Labor Standards Act (FLSA): Withdrawal (RIN: 1235-AA34). We received the rule on May 6, 2021. It was published in the Federal Register as a final rule; withdrawal on May 6, 2021. 86 Fed. Reg. 24303. The effective date is May 6, 2021. The Department stated that this action finalizes its proposal to withdraw a rule titled, Independent Contractor Status under the Fair Labor Standards Act, (Independent Contractor Rule) which was published in the Federal Register on January 7, 2021. See generally 86 Fed. Reg. 1168. The Department also stated that upon further review and consideration it does not believe that the Independent Contractor Rule fully aligns with the Fair Labor Relations Act text or purpose, or with decades of case law describing and applying the multifactor economic realities test. See generally 29 U.S.C. 201-219. The Congressional Review Act (CRA) requires a 60-day delay in the effective date for a major rule from the date of publication in the Federal Register or receipt of the rule by Congress, whichever is later. 5 U.S.C. § 801(a)(3)(A). The 60-day delay in effective date can be waived, however, if the agency finds for good cause that delay is impracticable, unnecessary, or contrary to the public interest, and the agency incorporates a statement of the findings and its reasons in the rule issued. 5 U.S.C. § 808(2). Here, although the Department did not specifically mention the 60-day delay in effective date requirement for major rules, the Department asserts that it found good cause to make this rule effective immediately upon publication. The Department stated that allowing for a delay between publication and the

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