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
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