The rule could result in more people being deemed employees instead of “independent contractors”, that are granted federal protections like minimum wage and overtime pay which the retail industry believes could increase costs for businesses.

When employers classify their workforce as contractors they are not under obligation to pay payroll taxes that fund Social Security or unemployment insurance programmes.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Just Style understands the proposal in its current form is not expected to significantly impact textile and apparel workers.

The American Apparel and Footwear Association (AAFA) and the United States Fashion Industry Association (USFIA) were unable to contribute a comment.

However, the independent contractor proposal, The National Retail Federation’s senior vice president of government relations David French, said: “The modern workplace is more complex in the wake of the pandemic. Retailers, along with countless other employers, maintain a wide range of business relationships with independent contractors, including billing, facility maintenance, data analysis, delivery, marketing and other critical services.

See Also:

“The current rules clearly define the difference between employees and independent contractors, providing much-needed legal certainty for employers, employees and independent contractors alike. The changes being proposed by the Labor Department will significantly increase costs for businesses across all industries, and further drive already rampant inflation.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“NRF staunchly opposes a change in this important area of law, which is both unwarranted and unnecessary. This decision will only foster massive confusion, endless litigation, reduced innovation and fewer opportunities for employees and independent contractors alike.”