NAIFA CEO Kevin Mayeux, CAE, issued the following statement on the Department of Labor’s announcement that it will rescind the federal rule on independent contractor classification:

NAIFA is encouraged by the Department of Labor’s announcement this month that it intends to rescind the 2024 independent contractor classification rule and consider how the department will proceed with respect to independent contactor classification. The rule, which is the subject of legal challenges and has not been enforced by the current administration, could misclassify many financial professionals as employees under federal labor laws, threatening their independence and ability to serve consumers effectively.

Many financial advisors operate locally as small business owners, employing others on their staff, and serving the members of their communities. Reclassifying them as employees rather than independent contractors could threaten their ability to best serve their clients and to ensure that their small businesses can operate efficiently.

NAIFA was among the leading opponents of the rule when it was proposed. We provided extensive comments and testimony to the DOL at that time, and we now look forward to working with the department as it considers how to improve policies that could affect the independence of NAIFA members and the ability of consumers to receive professional financial guidance.