Biden Labor Department Nixes Trump Rule Affecting Gig Workers
The U.S. Department of Labor announced it is withdrawing a rule by the previous Trump Administration affecting independent contractors that was set to go into effect Friday.
The Trump rule would have favored app-services firms like Uber, DashDoor and Instacart by narrowing the review and prioritizing certain factors to be weighed in deciding whether a worker is an employee or an independent contractor.
The Biden Administration action restores the previous approach to enforcing the Fair Labor Standards Act (FSLA) that still allows companies to classify their contractors as independent but requires a broader analysis.