ARLINGTON, VA -- The U.S. Department of Labor released its final independent contractor rule today, aimed at defining whether an individual is an employee or an independent contractor under the Fair Labor Standards Act. The rule could threaten the classification of many financial advisors from coast to coast and cause a reduction in the number of advisors serving American consumers.

The National Association of Insurance and Financial Advisors (NAIFA), which provided extensive commentary and testimony to the DOL before the rule’s release, is reviewing the 300+ page rule and will comment on its potential impacts shortly.  “We appreciate the Department of Labor acknowledging many of NAIFA’s concerns and we are analyzing the rule. NAIFA remains committed to preserving the ability of our members to choose to operate as independent contractors” said Kevin Mayeux, CEO of NAIFA. “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 abilities of advisors to best serve their clients, and to ensure that their small businesses can operate efficiently.” Mayeux added.

Founded in 1890, the National Association of Insurance and Financial Advisors is the preeminent association for financial service professionals in the United States of America. NAIFA members, in every Congressional district and every state house, subscribe to a strong Code of Ethics and represent a full spectrum of practice specialties to promote financial security for all Americans. Complimented by its professional development and consumer divisions, the Society of Financial Service Professionals and Life Happens, the association delivers value through advocacy, service, and education.