Washington, D.C., October 26, 2020 – SIFMA submitted a comment letter today on the Department of Labor’s notice of proposed rulemaking to revise its interpretation of independent contractor status under the Fair Labor Standards Act. The proposed rule would replace the existing six-factor “economic realities” test with a similar but streamlined test that ultimately answers whether a worker is in business for themselves or is economically dependent on the employer for work.

“The proposed test and weighting of factors appropriately reflects and accommodates the economic realities of SIFMA’s independent broker-dealer members and their financial advisors who choose to operate as independent contractors,” SIFMA wrote in the letter. “The proposed test would continue to provide financial advisors with flexibility in how they operate their business and further support and aid their efforts in for advising and helping American families build secure financial futures.”

SIFMA’s full comment expanding on these views and several suggested revisions can be found here.

SIFMA also joined several financial services trade associations in a joint letter, found here.

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SIFMA is the leading trade association for broker-dealers, investment banks and asset managers operating in the U.S. and global capital markets. On behalf of our industry’s nearly 1 million employees, we advocate for legislation, regulation and business policy, affecting retail and institutional investors, equity and fixed income markets and related products and services. We serve as an industry coordinating body to promote fair and orderly markets, informed regulatory compliance, and efficient market operations and resiliency. We also provide a forum for industry policy and professional development. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.