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The Department of Labor’s independent contractor rule change is great news for Americ

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Unread 01.06.21, 07:28 PM
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The Department of Labor’s independent contractor rule change is great news for Americ

01.05.21 01:06 PM

America’s*workforce has*long*needed a consistent, clear, and*unrestrictive*interpretation of independent contractor status under the*1938*Fair Labor Standards Act. It now has one. The Department of Labor recently finalized an interpretation,*proposed in October, that would*loosen restrictions on*the classification of*independent contractors,*helping these workers*retain the flexible status they enjoy. The department wrote that its updated guidance would “promote certainty for stakeholders, reduce litigation, and encourage innovation in the economy.” This development couldn’t come soon enough. Freelancing, independent contracting, and gig work*are*under siege by*proposals in Congress,*such as*the PRO Act,*and*state laws, such as*California’s AB-5.*These efforts to*over-regulate flexible work will*hurt*workers. The gig economy*has helped*Saginaw Valley State University*student Alison Rigterinkmake extra money and gain valuable work experience*between her classes. Pennsylvania’s*Marilyn Costicworries that efforts to restrict independent contracting*will hurt or destroy the business she*has grown over nearly*four*decades. Brian Feulner, a California-based*photojournalist, fears that AB-5 will force him to*convert to employee status or stop producing videos entirely. The Department of Labor’s updated guidance will*bring greater assurance to these*and other*independent contractors. The*new rule*would: Clarify the “economic reality” test to determine a worker’s status as an employee or an independent contractor. Identify and explain the nature and degree of workers’*control over their work and*their*opportunity for profit or loss based on initiative*and*investment, to determine whether […]

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