[US Department of Labor issued a rule to prevent employers from
classifying workers as "independent contractors" ]
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DOL RULE TO CURB EMPLOYER MISCLASSIFICATION OF WORKERS  
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Heidi Shierholz
January 9, 2024
Economic Policy Institute
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_ US Department of Labor issued a rule to prevent employers from
classifying workers as "independent contractors" _

, getty

 

EPI welcomes the U.S. Department of Labor’s final rule issued today
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combat employer misclassification of workers as independent
contractors and ensure that more workers can enjoy the rights and
protections they are already legally entitled to.

Employer misclassification of workers as independent contractors robs
workers of labor rights and threatens their economic security. Many
workers are harmed by employer misclassification—particularly those
in the lowest-wage and most difficult jobs, such as nail salon
workers, truck drivers, and construction workers. Allowing employers
to exploit loopholes in labor law puts these workers at greater risk.
A previous EPI analysis found that in 11 commonly misclassified
occupations
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misclassified as independent contractors lose out on thousands of
dollars in earnings and benefits per year, compared with workers doing
the same job with employee status.

Since this rule was proposed, opponents of this rule have waged an
all-out misinformation war, claiming that independent entrepreneurs
and business owners will now be forced into employee status against
their will. The reality is that if the Trump administration’s rule
was allowed to stand, workers with far less power to actually set the
terms and conditions of their employment—not bonafide
contractors—would have continued to lose out on basic worker
protections, earnings, and benefits to which they should be entitled.

* workers rights
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* independent contractors
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