The U.S. Department of Labor is proposing new rules that could help gig workers be classified as employees instead of independent contractors.
The rules “would provide guidance on classifying workers and seeks to combat employee misclassification,” the department said in a news release Tuesday (Oct. 11).
This is a serious issue denying workers rights and protection under the law, subjecting them to wage theft, and hurting the economy, according to the release.
“While independent contractors have an important role in our economy, we have seen in many cases that employers misclassify their employees as independent contractors, particularly among our nation’s most vulnerable workers,” said Secretary of Labor Marty Walsh in the release.
The new rule would align the Labor Department’s approach with the courts’ interpretation of the Fair Labor Standards Act (FLSA) and would go back to what the department said is the long-held interpretation of the economic reality factors, the release stated.
“These factors include the investment, control and opportunity for profit or loss factors,” according to the release. “The integral factor, which considers whether the work is integral to the employer’s business, is also included.”
Among these interventions was at the consultation launched by the National Labor Relations Board (NLRB) about whether to change the standard for determining the independent contractor status of workers.
Two companies at the center of the issue include Lyft and Uber. In March, Washington State passed a law establishing minimum pay standards for the companies’ drivers and giving them paid sick time, family medical leave, and workers’ compensation. However, the law stops short of classifying drivers as employees, a sore point between labor groups and gig economy giants.
Featured News
Redfin Settles $9.2M Commission Inflation Lawsuits
May 7, 2024 by
CPI
DOJ Supports Colorado’s Efforts to Block Kroger-Albertsons Merger
May 7, 2024 by
CPI
Japan Considers Regulation of AI Developers
May 7, 2024 by
CPI
European Commission Extends Decision Deadline for Ita-Lufthansa Merger
May 7, 2024 by
CPI
UK, US and Australia Sanction Senior Leader of LockBit Cybercrime Gang
May 7, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI