The Department of Labor has issued a final rule that targets “employee misclassification” of independent contractors.
“Misclassifying employees as independent contractors is a serious issue that deprives workers of basic rights and protections,” acting Labor Secretary Julie Su said in a press release.
Critics of the rule, however, claim it would rob workers of the flexibility they want.
The final rule replaces the Wage and Hour Division’s analysis for determining if a worker is an employee or an independent contractor under the Fair Labor Standards Act of 1938. DOL contends the rule is “more consistent with judicial precedent and the act’s text and purpose,” as opposed to a 2021 final rule.
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