On Wednesday, the US Department of Labor withdrew a policy that would make it easier to classify workers as independent contractors.
The old “Independent Contractor Rules” Post In the last few days of the Trump administration, it was supposed to come into effect in just two days.
The move is to determine whether the Ministry of Labor should continue to use existing rules under the Fair Labor Standards Act of 1938 to classify workers as independent contractors without the protection of traditional wages and employee benefits. Means.
The rules of the Trump era have simplified the process of determining whether a worker is an employee of a company or doing business for them. Historically, regulators have determined the amount of work an employer manages, the level of professional skills a worker needs, and the worker’s ability to run a business when determining whether a worker is truly independent. We have considered six factors, such as the investment made and the permanence. Of the relationship between workers and employers. The now revoked Trump era rules have reduced these factors to two. Controls exercised by the employer and opportunities for workers’ profits or losses.
“By withdrawing the Independent Contracting Regulations, we will help protect essential workers’ rights and prevent the erosion of workers’ protection,” said Secretary of Labor Marty Walsh. statement..
“Legal business owners play an important role in our economy, but if employers misclassify them as independent contractors, workers often lose significant wage-related protection. Employees to receive the protection provided by the Fair Labor Standards Act. “
Former union officer Walsh has returned the Ministry of Labor to its historic role in protecting workers, overturning the employer-friendly policies of its predecessor, Eugene Scalia.Last week, Walsh was actually hit by many gig workers, including those who drive and deliver Uber, Lyft, and DoorDash groceries...
Gig companies have fought primarily to maintain an independent position in the part-time workforce. We’re spending $ 200 million on California’s voting initiative to waive California’s strict worker protection legislation.
Under existing federal law, these companies can continue to classify drivers as independent contractors. But labor advocates say Trump’s rules would have made it easier for other large employers to circumvent their responsibilities to workers.
Independent contractors, including gig workers, are much cheaper for companies to hire, but given employees such as minimum wage, overtime, workers’ accident compensation insurance, sick leave, and the right to organize, qualifications for workplace protection are There is none. The National Employment Law Project, a think tank for professional workers, Estimated Last year, 30% of workers were mistakenly classified as independent, and the state could incur billions of dollars in tax revenue.
Employment lawyers expect the Biden administration to aggressively chase companies that misclassify workers.
The Associated Press contributed to the report.
The Ministry of Labor overturns the rules of the Trump era, which made it easier for companies to call workers independent contractors.
Source link The Ministry of Labor overturns the rules of the Trump era, which made it easier for companies to call workers independent contractors.