The National Labor Relations Board voted to reverse the employer-friendly test on independent contractor classification on Tuesday.

The background: The decision overturned the Trump administration’s ruling to elevate “entrepreneurial opportunity” as the key factor for worker classification, returning to the common law test.

Why it matters: The rule might shift the employment status of millions of Americans, including many in manufacturing.

The NAM says: “The ruling will not only impact ongoing labor and employment relationships, but also create new complications that are unnecessary during a period of immense economic flux,” said NAM Director of Labor Policy Brian Walsh.

  • “Its effects will only further challenge manufacturers at a time when they need the flexibility and contingency offered through temporary and contract workers to best manage supply chain impacts, demand for manufactured products and other inflationary challenges.”
  • “The proposed changes would eliminate this flexibility and will lead to constant and unpredictable labor flows, potentially resulting in overstaffing or understaffing while failing to meet a manufacturer’s workforce needs.”