Biden administration revising rule on independent contractors – FreightWaves
The Biden administration has unveiled a proposed rule that could raise costs for trucking companies and gig transportation, such as Uber and Lyft, that rely on independent contractors.
The 184-page proposed rule, revealed by the U.S. Department of Labor s Wage and Hour Division (WHD) on Tuesday, reinstates guidance similar to that used under the Obama administration that is considered less favorable to classifying workers as independent contractors.
Through our enforcement in the wage and hour division, we know that misclassification is occurring in many industries and sectors, said Principal Deputy Administrator of WHD Jessica Looman during a media briefing Tuesday. We believe the proposed regulation would better protect workers from misclassification, while at the same time providing a consistent approach for those businesses that engage or wish to engage with independent business contractors.
In early 2021, just before the Biden administration came into office, the Trump administration published its own independent contractor status that is considered far more favorable to establishing that a worker can be independent.
After Biden s DOL promptly withdrew that guidance, a federal court ordered that the Trump rule be put back into place, saying that the Biden administration did not follow proper procedure in withdrawing it.
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