The US Department of Labor has finalized a choice that could make it simpler for “gig economy” firms to categorise their workers as impartial contractors, relatively than staff that can declare authorized advantages. The Trump administration launched its remaining model of the rule immediately, and it’s set to take impact on March eighth, though this could change after President-elect Joe Biden takes workplace in January.
The DOL proposed a brand new framework final yr for classifying staff and contractors. It focuses on two “core factors” for distinguishing the 2: the “nature and degree of control over the work” and the “opportunity for profit or loss” based mostly on initiative and funding. It additionally lists extra “guideposts” that embrace “the amount of skill required” for the job, the “degree of permanence” of the working relationship, and whether or not the work is a part of an “integrated unit of production.”
As The New York Times famous final yr, the rule is decoding present rules relatively than establishing new ones, and it solely covers federal legal guidelines enforced by the DOL. States can nonetheless set up their very own definitions — like California’s Prop 22, which specifies that Lyft and Uber drivers aren’t staff. However, it could nonetheless broadly affect how firms define their workers. The nonprofit labor rights group National Employment Law Project known as it a “narrowing” of the requirements relatively than a significant clarification.