NAIFA ASKS DOL TO EXEMPT FINANCIAL PROFESSIONALS FROM PROPOSED EMPLOYMENT CLASSIFICATION RULE
December 19, 2022 by NAIFA
A comment letter submitted by NAIFA President Lawrence Holzberg, LUTCF, LACP, on behalf of the association to the U.S. Department of Labor urges the department to provide an exemption or carve-out for financial professionals in a proposed rule on employee or independent contractor classification under the Fair Labor Standards Act.
Independent insurance producers, brokers, and financial advisors have a long history of being independent contractors and not employees under state and federal labor laws. These professionals are highly trained, highly educated, highly regulated professionals who often own their own small businesses and assume the risks and rewards of doing so. They maintain their own offices, purchase their own insurance, hire employees, pay employment taxes, and purchase workers’ compensation insurance for their employees. They enter into written agreements with insurance companies and independent broker-dealers that carefully set forth the terms of their independent contractor status.
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