[csusbpeace] Biden Cracks Down On Misclassification Of Workers As Independent Contractors
- From: "raccoon" <dmarc-noreply@xxxxxxxxxxxxx> ("bigraccoon1")
- To: "CSUSBPEACE@xxxxxxxxxxxxx" <CSUSBPEACE@xxxxxxxxxxxxx>
- Date: Tue, 11 Oct 2022 11:08:51 -0700
https://www.huffpost.com/entry/biden-misclassification-of-workers-as-independent-contractors_n_63457eb7e4b08e0e607d2a52
<https://www.huffpost.com/entry/biden-misclassification-of-workers-as-independent-contractors_n_63457eb7e4b08e0e607d2a52>
Biden Cracks Down On Misclassification Of Workers As Independent Contractors
The administration has rolled out a proposed rule that the gig companies are
not going to like.
The Biden administration introduced a new regulation Tuesday that would make
it harder for employers to misclassify workers as “independent contractors”
to avoid minimum wage and overtime laws.
The proposal <https://public-inspection.federalregister.gov/2022-21454.pdf>
from the White House would replace an earlier, more business-friendly rule
created by the Trump administration that set looser guidelines around who
could be considered a contractor in the workplace. Labor Department officials
said the previous administration’s rule increased the likelihood of workers
being exploited
<https://www.huffpost.com/entry/biden-repeals-trump-rule-meant-to-protect-uber-independent-contractor-model_n_6091a3a8e4b0c15313f9445e>.
Employers often mislabel their workers as contractors in order to evade
workplace laws or shift certain costs of employment onto workers. Gig
companies like Uber and Lyft have been fighting misclassification lawsuits
for years and have battled both state and federal officials over tighter
regulations.
“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,” Labor
Secretary Marty Walsh said in a statement.
The rule must undergo a public comment period before officials can finalize
and implement it.
The proposal essentially articulates how the Labor Department views the
independent contractor issue. It pertains only to the Fair Labor Standards
Act <https://www.dol.gov/agencies/whd/flsa>, the New Deal-era law that
created a federal minimum wage and ensured workers receive premium pay for
working extra hours. It would not apply to other federal workplace laws or
make it easier for workers labeled contractors to form unions.
But the new federal guidelines, if implemented, could make it easier for more
workers to pursue complaints or lawsuits against their employers if they
believe they’ve been shorted on their paychecks. It could also impact the way
state and local officials craft legislation aimed at cracking down on
misclassification.
The White House says Trump made it too easy for companies to misclassify
workers and get away with dodging minimum wage and overtime laws.
Chip Somodevilla via Getty Images
Although the gig platforms may be the best-known users of independent
contractors, the practice has been ingrained in the transportation and health
care sectors for many years.
The Labor Department estimates that 22 million people are labeled as
contractors. In the proposal, officials pointed to an assessment from the
National Employment Law Project that anywhere from 10% to 30% of them are
misclassified and should be considered employees. Workers of color are hurt
more by the practice because of the industries where it’s most prevalent,
like agriculture, construction and trucking.
Seema Nanda, the Labor Department’s solicitor, said on a call with reporters
Tuesday that the Trump regulation had made it too easy to get away with
misclassifying workers when it comes to the Fair Labor Standards Act.
“The 2021 independent contractor rule is out of sync with what the courts
have been saying for decades,” she said. “And we believe that disconnect ...
increases the likelihood of misclassification, which hurts workers and their
families.”
The new rule would broaden the criteria that could be considered when
determining whether someone is a legitimate contractor or a misclassified
employee, like how much control they have over their schedule and work,
whether they have the ability to work for other companies and how permanent
the working relationship is.
“To be an independent contractor ... a worker must be in business for
themself,” Jessica Looman, the acting head of the Labor Department’s Wage and
Hour Division, said on the call.
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