Biden Blocks Trump’s Gig Worker Rules

The Biden administration just unraveled a Trump-era rule change that offered to make it easier for companies to classify–or reclassify–their workers as independent contractors rather than employees. The move stands to throw a wrench in the business models of companies like Uber and DoorDash, which had been the most vocal advocates for the Trump-era rule.

The Department of Labor (DOL) on May 5, 2021 revoked a Trump-era rule, which had been on hold since getting completed in early January. The agency cited the rule change as inconsistent with existing laws, including the Fair Labor Standards Act, which is a 1938 law establishing basic worker protections. The DOL explained that “the Department believes that the [Trump-era] rule is inconsistent with the FLSA’s text and purpose, and would have a confusing and disruptive effect on workers and businesses alike due to its departure from longstanding judicial precedent.”

To keep reading, click here: Biden Blocks Trump’s Gig Worker Rules

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4 thoughts on “Biden Blocks Trump’s Gig Worker Rules

  1. Since you’re already an independent contractor, EHRL, and, I assume, by choice, how, exactly, would this rule affect your livelihood?

    1. Yes, I’m an independent contractor by choice. This, in particular, shouldn’t have too great an effect because the Trump rule never went into effect. The question is, what comes next? The PRO act would be utterly devastating, though,

  2. I agree that this new PRO ACT of 2021 is not good for any workers and businesses, especially the small business. I don’t worry about the big businesses because their idea of workers is measured in number dollar cost as to how much the labor cost affects the profit line for the shareholders. I have, personally, a duality view of unionization, based on what I experienced working in a union job, that really didn’t help get those assumed benefits and failed to be transparent when negotiating new contracts. Unions in their inception, were good for getting worker rights but over the years, the union bosses have become too powerful in assuming they have the best interest of the workers at heart, especially using pension funds to make political statements.
    While the idea of creating fair wages and a method of fairer hiring practices sounds good on paper, this Pro Act creates handicaps on both sides. It doesn’t allow a business to hire for its needs because a set of conditions have to be in place–which cause the employers to lower labor staff needs–raise the starting wage, which also means higher production needed to match the higher labor cost. The counter argument about not needing to pay the union fees to get benefits is mainly a ploy to not address the flaw in the “right to work” law, which is that right to work equals right to fire with no reason given. That’s the one positive of unions, is that being in a union job creates a higher possibility of not getting fired for minor problems with job performance. Neither situation effectively addresses how to deal with poor performing workers, because it fails to address the real reason of a balance between employees and employers—communication. Big business has those CEO’s who make decisions geared towards the whole company forward movement but fails to maintain information communication on company policy mandates. Employees come into a job expecting certain ideal conditions and no one tells them the real job expectations until it is too late.
    Independent contractors usually work by a job contract, and hired for that job by the employers. Unless it is part of the job offer, benefits and hourly wages are not inclusive. Opponents of the Pro Act claim that it will eliminate the wealth gap by forcing all employers to hire, pay and schedule with benefits all employees without needed to pay union dues. But this goes totally against the main principal of operating a successful business (to keep it going long term) without loss. I didn’t mention profit, but you can’t be successful and have employees is you don’t meet cost of operation. The Pro Act is another dream theory without effective methods to maintain jobs with fair wages and benefits–it is merely another form of regulation to hamper growth.

  3. Oh, no; the Mark of the Beast poster has invaded this comment stream too!

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