American Council of Life Insurers Issues Public Comment on Wage & Hour Division Proposed Rule

WASHINGTON, Feb. 26 -- David Leifer, vice president and associate general counsel, and Ian Trepanier, policy analyst, at the American Council of Life Insurers have issued a public comment on the Wage and Hour Division proposed rule entitled "Independent Contractor Status Under the Fair Labor Standards Act: Delay of Effective Date". The comment was written on Feb. 23, 2021, and posted on Feb. 24, 2021:

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The American Council of Life Insurers appreciates the opportunity to submit comments on the Department of Labor's (DOL or Department) proposed delay of effective date regarding the final rule on the classification of an independent contractor status under the Fair Labor Standards Act (FLSA). ACLI urges the Department to not delay the final rule.

In October 2020, ACLI submitted comments on the proposed regulation, emphasizing the need for the DOL to streamline the five distinct factors of the economic realities test. We also explained why the ABC test should not be implemented as an alternative and are pleased that the DOL has decided not to pursue the ABC test in the final ruling.

This decision will protect the estimated 704,100 licensed life insurance agents from across the United States who chose to work as independent contractors. These independent agents offer Americans seeking financial security the choice of products from among a variety of life insurance companies.

The final rule promotes the life insurance industry's diverse distribution models that expand job opportunities, products, services, and benefits to millions of Americans, while permitting independent contractors to receive important health and welfare benefits.

ACLI is supportive of the final rule and we urge the DOL to not delay the effective date. The final rule strengthens and clarifies existing law protecting independent contractor status, while ensuring the life insurance industry; including the independent agents and millions of customers that depend on them for financial security, will not be negatively impacted by this rule.

We stand ready to provide additional information and thank the Department for the opportunity to present these comments for consideration.

Very truly yours,

David Leifer, Vice President & Associate General Counsel, American Council of Life Insurers

Ian Trepanier, Policy Analyst, American Council of Life Insurers

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The proposed rule can be viewed at: https://www.regulations.gov/document/WHD-2020-0007-1802

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