House Republicans have advanced legislation that would block a U.S. Department of Labor (DOL) ruling that would make it harder for companies to classify workers as independent contractors, reported Bloomberg Government. The final ruling was introduced in January of this year and went into effect on March 11.

On Thursday, the Committee on Education and the Workforce voted 21-13 to bring the measure under the Congressional Review Act, siding with NACS and other business groups that oppose the rule.

According to Bloomberg Government, the resolution now heads to the House floor, where it is expected to pass before being passed on to the Senate.

During Thursday’s debate, Republicans on the House panel said, “the rule will lead to millions of self-employed Americans losing their contractor status and the flexibility, independence and earning potential that come with it,” Reuters reported.

The final ruling replaced a 2021 rule which said the key factors in determining worker classification were control and a worker's opportunity for profit or loss. The new ruling looks at six guiding factors, with none of them carrying greater weight.

In December 2022, NACS filed comments with DOL on its proposal to replace the existing regulations surrounding the classification of certain workers as independent contractors.

In the comments, NACS General Counsel Doug Kantor wrote: “NACS is concerned that the proposed rule changes legal standards for the determination of whether or not a worker is a contractor or an employee in ways that will disadvantage small businesses, create legal uncertainty, harm beneficial contracting relationships and undermine compliance with other laws.”