New federal rule on independent contractors could trigger wave of lawsuits against businesses

[Yo_Mama_Been_Loggin]

Companies will potentially have a harder time classifying millions of workers as independent contractors under a new Department of Labor final rule.

The new rule expands the so-called “economic reality” test so that employers have to weigh a wider variety of factors when classifying workers, including how much control the worker has over their schedule and their employment, how permanent their employment is, and how integral their work is to the work of the company, among the six factors employers must consider.

“Misclassifying employees as independent contractors is a serious issue that deprives workers of basic rights and protections,” said Acting Secretary of Labor Julie Su, in a statement. “This rule will help protect workers, especially those facing the greatest risk of exploitation, by making sure they are classified properly and that they receive the wages they’ve earned.”

The agency said the final rule better aligns government regulations with “longstanding judicial precedent” and better adheres to the Fair Labor Standards Act.

https://www.bizjournals.com/seattle/news/2024/01/09/independent-contractor-rule-labor-department-gig.html

[SouthernDem4ever]

1. This has been rampant since the 80's

The laws were clear as to how an employer can treat a contractor, yet they continue to break that law and there is no enforcement.