The Biden Administration Just Proposed a Rule That Could Change Work for Millions [View all]

On Tuesday, the Department of Labor released a new proposal for determining whether independent contractors are employees, according to the New York Times. The measure would be a small but significant lowering of a Trump-era standard that could allow more workers to gain the benefits of employment, like guaranteed minimum wage and overtime.

The DOL has the ability to set a provisional rule that, while not strictly enforceable across the board, would create a standard that many companies and courts would likely use to determine who is and is not an employee.

NEWS: Biden admin releases long-anticipated rule making it more likely for millions of workers to be classified as employees. Could deal a blow to gig companies' business model. https://t.co/NsEARkIhhv

— Noam Scheiber (@noamscheiber) October 11, 2022

The new rule, according to reporting from the Times, would move the test for employment closer to one that existed during the Obama administration. In 2020, the Trump administration essentially proposed the opposite. The hope of the Trump admin was to enshrine an employment model that carved out contractors, aiding gig companies like Uber. But if the new DOL proposal were enacted, companies that make their workers independent contractors instead of employees—despite the workers doing the tasks of an employee—could be punished for violating labor law.

https://www.motherjones.com/politics/2022/10/biden-admin-gig-worker-misclassification-employment/