WHAT:
The American Society of Travel Advisors (ASTA) submitted comments to the U.S. Department of Labor in support of its proposed rule on employee and independent contractor status under the Fair Labor Standards Act, the Family and Medical Leave Act and the Migrant and Seasonal Agricultural Worker Protection Act.
In its filing, ASTA expressed support for the Department’s proposal to replace the 2024 worker classification rule with a clearer and more predictable framework grounded in longstanding precedent. ASTA emphasized that independent contractors play a critical role in the travel agency industry, where 71 percent of travel advisors operate as independent contractors.
ASTA also urged the Department to provide additional clarity in the final rule, particularly around the greater weight given to the two core factors: the worker’s control over the work and the worker’s opportunity for profit or loss. ASTA noted that these factors better reflect how independent contractor relationships function in the travel industry.
WHY IT MATTERS:
Independent contractors are central to the travel agency business model, offering flexibility for advisors and helping agencies meet consumer demand in a way that may not be practical through traditional employment arrangements.
ASTA noted that the current worker classification framework creates uncertainty for businesses, especially small businesses that may not have access to outside legal counsel. Because 97 percent of travel agencies qualify as small businesses under Small Business Administration size standards, clearer federal guidance would help ASTA members structure compliant business relationships and reduce the risk of inadvertent misclassification.
QUOTE FROM ZANE KERBY, ASTA PRESIDENT AND CEO:
“Independent contractors are essential to the travel advisor profession and to the entrepreneurial model that supports agencies of all sizes. ASTA strongly supports efforts to provide clearer, more predictable federal guidance so our members can engage independent advisors with confidence, remain compliant and continue serving travelers across the country.”
MORE INFORMATION:
ASTA’s comments were submitted to the U.S. Department of Labor’s Wage and Hour Division in response to the proposed rule, Employee or Independent Contractor Status under the Fair Labor Standards Act, Family and Medical Leave Act, and Migrant and Seasonal Agricultural Worker Protection Act, Docket No. WHD-2026-0001.