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