Posted 1/9/2024, 6:35:21 PM
Labor Dept. Seeks to Limit Use of Independent Contractors, Drawing Business Backlash
- New Labor Dept. rule aims to limit companies' use of independent contractors to cut costs, forcing more to be classified as employees
- Rule expected to increase labor costs for industries relying on contractors (trucking, mfg., healthcare, gig economy)
- Workers considered employees if "economically dependent"; doesn't go as far as some state laws
- Business groups strongly critical, say it will limit opportunities and create confusion/lawsuits
- Expected to impact app-based gig companies like Uber and Lyft, though they say drivers will still be contractors