New Biden labor rule would make contractors into employees
WASHINGTON, Oct 11 (Reuters) - The U.S. Department of Labor proposed a rule on Tuesday that would make it more difficult for companies to treat workers as independent contractors, a change that is expected to shake up the business models of the ridesharing, delivery and other industries that rely on gig workers.
The proposal would require that workers be considered a company's employees, who are entitled to more benefits and legal protections than contractors, when they are "economically dependent" on the company.
The Labor Department said it will consider workers' opportunity for profit or loss, the permanency of their jobs, and the degree of control a company exercises over a worker, among other factors.
https://www.reuters.com/world/us/new-biden-labor-rule-would-make-contractors-into-employees-2022-10-11/?taid=63456d8a49b6990001008bc4&utm_campaign=trueAnthem
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Comments (7)
I'm curious as to how this will affect companies not only from an HR perspective, but also a safety perspective? I'd imagine it means you're responsible for including them in your regular employee safety trainings and everything else?
I want to see the final rule? Is this out for "comment". My first thought is this sounds of over-reach by the government. However, SOME companies abuse the heck out of the present status of "contractors". I am contractor and want to stay that way! I advocate, train, mentor, and recommend to my customers but I pride myself on specifically not working for anyone! I still get calls from headhunters asking me to take a job here or there! Sometimes I am tempted, as I do miss the HR world. However, then I remember the >60 weeks and being told to do things I did not feel we or I should do, and that is the end of that thought! I did that for 41 years in the Corporate World, I paid my dues! I for one wish to remain a contractor! Much easier to walk away, if I feel the slightest need to do so! Plus if it is a beautiful Fall Day like today, I can just shut the PC down and go enjoy, unless I am at a customer. I am really tempted to shut it down right now and take Gus (my Golden) on a walk in the woods along the river! I will wait to go about 4 PM, maybe the geese and ducks will be coming back to the river from following the framers chop corn, and the salmon in the river jumping out so we can see them!
Very interesting. If they get switched into employees, then they need to be treated the same way as the employees that were hired before them - and yes that means safety training and including them in everything!
Terrible proposal. Contract work is voluntary. Economic dependency is a risk taken by the one who engages in creating a business, and decides to have one major client. Why should that risk be forced on the client? That could be one of the most backward things I’ve read as a justification to a proposal.