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Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Rules and Regulations
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Some commenters raised procedural objections to the Departments proposed delay. The Associated Builders and Contractors, the Financial Services Institute, and Littler Mendelson, P.C.s Workplace Policy Institute asserted that the 19-day comment period for this rulemaking was insufficient, and critiqued the Departments statement in the NPRM that WHD will consider only comments about its proposal to delay the rules effective date. 86 FR
8327. The Department believes that the 19-day comment period did provide a meaningful opportunity to comment on the proposed delay. The Department received over 1,500 comments in response to the NPRM proposing to delay the January 2021 Rules effective date, comparable to the approximately 1,800 comments it received in response to the substantive notice of proposed rulemaking that it published in September 2020. See 85 FR 60600.
Moreover, given the Independent Contractor Rules original March 8, 2021
effective date, it would have been impracticable to afford a longer comment period. Had the Department allowed for a longer comment period, the Independent Contractor Rule would have taken effect before the delay could begin, which would have defeated the purpose of this rule and caused additional confusion for regulated entities. As to the issue of the scope of comments sought in this rulemaking, the Department sought comments about, and considered whether, issues of policy, law, and fact warrant an extension of the Independent Contractor Rules original effective date by 60 days.
If after having had additional time to consider the January 2021 Rule, the Department decides to propose any changes to the January 2021 Rule, it will at that point solicit comments on its substantive proposal.
Other commenters, including Littler Mendelson, P.C. and the National Federation of Independent Business, asserted that any delay to the and Seyfarth Shaw on behalf of the Coalition for Workforce Innovation, argued that the Department had not based its reasons for proposing a delay on those enumerated in OMB Memorandum M2114.
But the issues the Department indicated it would consider if allowed additional time, including the FLSAs purpose, the costs and benefits of the rule, and the clarity the rule does or does not provide, are among the types of issues referenced in the memorandum. See OMB Memorandum M2114
directing agencies to consider in deciding whether delay of a rules effective date is appropriate, among other things, whether the rule reflected proper consideration of all relevant facts, the rule reflected due consideration of the agencys statutory or other legal obligations, the rule is based on a reasonable judgment about the legally relevant policy considerations, and objections to the rule were adequately considered.

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Independent Contractor Rules March 8, 2021 effective date must be published at least 30 days before such a delay takes effect. The Department disagrees.
Section 553d of the Administrative Procedure Act provides that substantive rules should take effect not less than 30
days after the date they are published in the Federal Register unless otherwise provided by the agency for good cause found. 5 U.S.C. 553d3. Even if this provision were to apply, the Department finds that it would have good cause to make this rule effective immediately upon publication. Like allowing for a longer comment period, allowing for a 30-day delay between publication and the effective date of this rulemaking would result in the January 2021 Rule taking effect before the delay begins, which would undermine this rules fundamental purpose of delaying the effective date before the Independent Contractor Rule takes effect in accord with the Regulatory Freeze Memorandum and result in additional confusion for regulated entities. The Regulatory Freeze Memorandum was issued on January 20, 2021, only 47
days before the rules original effective date of March 8, 2021. It would not have been practicable to issue an NPRM
proposing to delay the Independent Contractor Rule and allow for ample time for public comment on that proposal in time to publish a final rule not less than 30 days before March 8.
Moreover, this rulemaking merely implements a 60-day delay of the Independent Contractor Rule, rather than itself imposing any new compliance obligations on the regulated community. Therefore, the Department finds that a lapse between publication and the effective date of this rule delaying the Independent Contractor Rules effective date is unnecessary.
Because allowing for a 30-day period between publication and the effective date of this rulemaking is both unnecessary and impracticable, there is good cause to make this final rule delaying the Independent Contractor Rules effective date effective immediately upon publication.
After reviewing timely comments submitted, the Department has decided to delay the Independent Contractor Rules effective date from March 8, 2021, to May 7, 2021, as proposed. This delay will allow the Department additional time to review the multiple issues of law, policy, and fact that warrant additional review and consideration in accordance with the Regulatory Freeze Memorandum before the Independent Contractor Rule goes into effect.

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Signed this 2nd day of March, 2021.
Jessica Looman, Principal Deputy Administrator, Wage and Hour Division.
FR Doc. 202104608 Filed 3221; 4:15 pm BILLING CODE 451027P

DEPARTMENT OF THE TREASURY
Office of the Secretary of the Treasury 31 CFR Parts 16, 27, and 50
Inflation Adjustment of Civil Monetary Penalties Departmental Offices Treasury.
Final rule; direct final rule.

AGENCY:
ACTION:

The Department of the Treasury Department or Treasury publishes this final rule to adjust its civil monetary penalties CMPs for inflation as mandated by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 collectively referred to herein as the Act. The Department also publishes this direct final rule to implement the inflation adjustment for the civil monetary penalties that may be assessed under 31
CFR part 16 and updates the inflation adjustments through 2021.
DATES: Effective dates: The final rule amendments to 31 CFR part 27 and 31
CFR part 50 are effective March 4, 2021.
The direct final rule amendments to 31 CFR part 16 are effective May 3, 2021.
Comments due: Written comments are due on or before April 5, 2021. If the Department receives substantive adverse comment, we will publish a timely withdrawal in the Federal Register informing the public that this direct final rule will not take effect.
ADDRESSES: You may submit comments on the amendments to 31 CFR part 16
by any of the following methods:
Federal eRulemaking Portal: http
www.regulations.gov.
Mail: Richard Dodson, Senior Counsel, General Law, Ethics, and Regulation, Department of the Treasury, 1500 Pennsylvania Avenue NW, Washington, DC 20220.
The www.regulations.gov site will accept comments until 11:59 p.m.
Eastern Time on the comment due date.
Received comments, including attachments and other supporting materials, are part of the public record and subject to public disclosure. Do not enclose any information in your comments or supporting materials that you consider confidential or SUMMARY:

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