Trump administration finalizes rule that could define gig workers as contractors
The US Department of Labor has finalized a decision that could make it easier for “gig economy” companies to classify their workers as independent contractors, rather than employees that can claim legal benefits. The Trump administration released its final version of the rule today, and it’s set to take effect on March 8th, although this could change after President-elect Joe Biden takes office in January.
The DOL proposed a new framework last year for classifying employees and contractors. It focuses on two “core factors” for distinguishing the two: the “nature and degree of control over the work” and the “opportunity for profit or loss” based on initiative and investment. It also lists additional “guideposts” that include “the amount…