The US Department of Labor faces pressure to resurrect a business-friendly independent contractor standard from Trump’s first administration after loosening enforcement around who is and isn’t considered an employee.
Earlier this month, the Trump-led DOL announced its inspectors would no longer follow the Biden-era independent contractor rule, which broadened the factors the agency used to determine a worker’s status under the Fair Labor Standards Act. The distinction can have major consequences for employers, as workers who are deemed “employees” would be owed minimum wages and overtime, while independent contractors are not.
The enforcement freeze was welcomed by companies that rely on contractors, like gig economy giants Uber Technologies Inc. and Lyft Inc., and the Associated Builders and Contractors, as well as some freelancers, who said the policy chilled their business relationships.
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