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Statement From John Balitis on U.S. Dept. of Labor Proposed Regulation


Important Development Impacting Worker Classification

PHOENIX, Ariz – Oct. 12, 2022 – Tuesday the U.S. Department of Labor proposed a new rule that would make it more difficult for companies to treat workers as independent contractors.  The rule would require that workers be considered employees, entitling them to more benefits and legal protections than contractors, when they are “economically dependent” on the business for which they work.

The rule may take several months to finalize, replacing a Trump-era regulation which provides that workers who own their own businesses or have the ability to work for competing companies can be treated as contractors.

The proposed rule adopts a broader definition of who qualifies as an employee, mirroring legal guidance issued by the Obama administration that the Labor Department withdrew during Trump’s presidency.

The proposed rule will be published on Thursday for a 45-day public comment period prior to formal adoption.

Jennings Strouss’ highly respected award-winning attorneys in the field of Labor and Employment Law are prepared to answer questions about this development.

John J. Balitis, Chair, Labor & Employment

About Jennings, Strouss & Salmon, PLC                  

For 80 years, Jennings Strouss has been dedicated to providing clients with strategic legal guidance to help them seize every opportunity. The firm is well-known for its rich heritage, commitment to community, and long-lasting relationships. We have a deep understanding of business and law.

Through our offices in Phoenix, Peoria, and Tucson, Arizona, and Washington, D.C., we leverage resources both regionally and nationally to serve our expanding client base. Jennings Strouss is deeply rooted in our legal and business communities and is especially instrumental in helping shape the dynamic growth of Arizona and many of its institutions. The firm promotes a pragmatic, results-oriented approach, coupled with a healthy, well-managed, and friendly atmosphere of collaboration.

For additional information, please visit www.jsslaw.com and follow us on LinkedIn, Facebook, and Twitter.


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