Tennessee group sues over Biden rule expanding federal criteria for classifying independent contractors as employees
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A Tennessee free-market group sued over a new federal rule that changes criteria for classifying workers as independent contractors or employees.
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The rule aims to prevent worker misclassification and replace a Trump-era standard. It establishes 6 criteria for determining if a worker is a contractor or employee.
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The lawsuit argues the Labor Department lacks authority to change the rule and didn't provide a reasoned explanation for it.
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The group claims the rule will force freelancers into undesirable employment relationships or prevent them from working.
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Major app-based platforms like Uber and Lyft have expressed confidence the rule won't force them to reclassify gig drivers as employees.