Biden Cracks Down On Misclassification Of Workers As Independent Contractors
Huff PostLOADING ERROR LOADING The Biden administration introduced a new regulation Tuesday that would make it harder for employers to misclassify workers as “independent contractors” to avoid minimum wage and overtime laws. “While independent contractors have an important role in our economy, we have seen in many cases that employers misclassify their employees as independent contractors, particularly among our nation’s most vulnerable workers,” Labor Secretary Marty Walsh said in a statement. It pertains only to the Fair Labor Standards Act, the New Deal-era law that created a federal minimum wage and ensured workers receive premium pay for working extra hours. increases the likelihood of misclassification, which hurts workers and their families.” The new rule would broaden the criteria that could be considered when determining whether someone is a legitimate contractor or a misclassified employee, like how much control they have over their schedule and work, whether they have the ability to work for other companies and how permanent the working relationship is.
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