March 06, 2024

Intermodal Industry Backs Legislation Halting Department of Labor Rulemaking

IANA Supports House & Senate Congressional Review Act to Preserve the Independent Contractor Model

CALVERTON, MD (March 6, 2024) – Today, the Intermodal Association of North America (IANA) expressed its strong support for the Congressional Review Act (CRA) resolution that seeks to repeal the Department of Labor’s (DOL) final rule, “Employee or Independent Contractor Classification Under the Fair Labor Standards Act.” The rule threatens the livelihood of millions of independent contractors, including the vast majority of intermodal truck drivers, who could be involuntarily reclassified as employees.

Following introduction of the CRA in both chambers of Congress, Joni Casey, President and CEO of the Intermodal Association of North America, issued the following statement:

“The intermodal industry serves as an important pillar of our nation’s economy, ensuring the safe and efficient transportation of cargo, ranging from industrial materials and agricultural products to consumer goods. For decades, more than 80 percent of intermodal drivers have chosen to carry out this important work as independent contractors. DOL’s recent rulemaking threatens to eliminate their freedom of choice and the opportunity to invest in and operate their own businesses. Without Congressional action, the DOL’s new regulations will negatively impact the nation’s supply chain by deterring qualified drivers from the industry and worsening existing driver shortages, which will ultimately slow the movement of goods and increase costs for consumers.

IANA commends Senator Cassidy of Louisiana, Congressman Kiley of California, and their colleagues for recognizing the magnitude of economic and workforce challenges created by the new independent contractor rule. The Association urges swift passage of the Congressional Review Act resolution to prevent the DOL’s harmful final rule from taking effect.”

Without congressional action, the DOL’s rule will take effect on March 11, 2024. In response to the introduction of the Congressional Review Act, IANA is sending a letter to Congress encouraging support for the resolution. A copy of IANA’s letter can be found here. To learn more about the significance of the independent operator model to the intermodal industry, please read IANA’s white paper, available here.