On Tuesday, the U.S. Department of Labor announced a proposal that could drastically reframe the distinction between independent contractors and employees. Here's what that means
If the measure is approved, “It’s not to say that every single independent contractor is going to have an easier time being classified as an employee, but I think some workers who are now considered independent contractors will have a stronger argument for employee classification,” Gough says.at places like Uber, Doordash and TaskRabbit, have criticized Biden’s lack of effort to protect gig workers since he took office.
“I’m sure that the employer community will protest the rule,” Gold says. “There’s more flexibility with a contract worker who is an at-will employee and generally, the pay is lower for a contract worker than for a permanent worker.”Gold says that for gig workers who hope to see changes from the proposal unfold soon, “don’t hold your breath.
Other federal agencies, like the Internal Revenue Service, as well as state governments, create their own standards for classifying employment status, so the proposal won’t affect those decisions.
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