November 28 Deadline to Comment on Biden Admin’s Proposed Rule to Reverse Trump-Era Independent Contractor Rule

The U.S. Department of Labor (DOL) proposes to reverse a Trump-era regulation that simplified worker classifications for independent contractors.

Such factors as whether an individual is economically dependent on an employer and whether individuals are in business for themselves determine worker classifications.

Independent contractors thrive on flexibility. They get to choose their hours and rates. Biden’s proposed rule would force them to choose between their main employment and supplemental income.

The Biden administration seeks to revise (complicate) the analysis under which they’re classified as employee or independent contractor. From CURE’s policy analysis:

This would take workplace regulations back to an era that predates the internet by returning to a traditional view – or totality-of-the-circumstances analysis – of the economic reality test with equal consideration of all six factors are: (1) the worker’s opportunity for profit or loss depending on managerial skill; (2) investments by the worker and the employer; (3) the degree of permanence of the working relationship; (4) nature and degree of control; (5) extent to which the work performed is an integral part of the alleged employer’s business; and (6) skill and initiative.

This could, if strictly, enforced call into question the status of every independent contractor in America and potentially dismantle the gig economy.

Over 59 million Americans are gig workers. Black and Hispanic workers substantially are more likely to do this kind of work. The Biden administration’s proposed new rule would have a disproportionate impact on this segment of workers. No one can afford this, especially with an inflation rate of over eight percent.

According to polling, gig workers themselves don’t want to be reclassified as employees. The proposed rule would limit the jobs they take. They’ll have to jump through the administration’s hoops to prove they seek to supplement their incomes the way they choose.

The public may comment on the proposed rule at the Federal Register website. You have the chance to share your opposition.

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