A reinstated rule could affect how roofing contractors categorize subcontractors, says Trent Cotney, partner at Adams and Reese.

Trent Cotney, partner at Adams and Reese, discusses a U.S. District Court ruling that reinstates an independent contractor rule affecting independent contractors.

The Department of Labor states the rule was in tension with the FLSA’s text and purpose, as well as relevant judicial precedent.

In 2020, the roofing industry joined the nation in facing multiple challenges brought on by the COVID-19 pandemic. However, these challenges also ushered in new opportunities.

The rules includes clarifications on the "economic reality" test, two "core factors" and other factors needed to determine if workers are employees or independent contractors.

Though the proposed rule change was made with large, multinational companies in mind, the impact will be wide and sweeping.

The Department of Labor's newly proposed distinction between employee and independent contractor will cause complications for roofing contractors that rely on subcontractor labor.