January 09, 2024

Statement on the Department of Labor's Final Rule to Force Reclassification of Independent Drivers

CALVERTON, MD (January 9, 2024) - Despite broad opposition across critical industries, including the intermodal transportation industry, the Department of Labor today issued a final rule establishing restrictive regulations for worker classifications under the Fair Labor Standards Act.

The burdensome new requirements significantly limit the use of independent contractors in the trucking industry and threaten to force the reclassification of over 80 percent of intermodal drayage drivers that currently enjoy independent contractor status. In response to the DOL’s announcement, Joni Casey, President & CEO, Intermodal Association of North America, offers the following statement:

“For decades, the independent contractor business model has been widely favored by intermodal motor carriers and drivers. Although employee-driver positions are readily available, these owner-operator drivers explicitly chose the freedom, flexibility, and independence that comes with small business ownership. By maintaining control over their schedules, opportunities, and business decisions, independent drivers are highly incentivized to provide safe, efficient, and cost-effective services that contribute to our nation’s economic growth.

DOL’s final rule would eliminate a worker’s ability to determine their own preferred career path and instead force them to either become an employee or leave their chosen profession – a profession in which they have already heavily invested. Among other things, this investment includes significant safety training and, in many instances, the purchase of a power unit. The rule will have detrimental impacts on the intermodal freight industry; reducing service efficiency and reliability, exacerbating existing workforce shortages, and increasing consumer costs. Already, the trucking industry is experiencing a shortage of qualified drivers. This shortage stands to worsen with the implementation of this rulemaking.

IANA is concerned about the forthcoming changes that risk the livelihood of our industry’s drivers and the owner-operator business model, which could adversely impact the supply chain and the greater economy. We urge Congress to act swiftly to overturn this ill-conceived rulemaking.”