By Daniel Wiessner
(Reuters) – The Biden administration and a Democrat-led U.S. labor board will implement a series of major employment policies in 2023 but could be stymied by challenges from business groups and Republican-led states that have criticized the measures.
The following rules are likely to face lawsuits in the new year, including claims that federal agencies had no reason to abandon Trump-era policies seen as favoring businesses and anti-union workers.
WORKER CLASSIFICATION
The U.S. Department of Labor in October unveiled a proposal to make it more difficult for companies to treat workers as independent contractors, a change that is expected to shake up ride-hailing, delivery and other industries that rely on gig workers.
The proposal would require that workers be considered employees, entitled to more benefits and legal protections than contractors, when they are “economically dependent” on a company. Most federal and state labor laws only apply to a company’s employees, who can cost employers up to 30% more than independent contractors, studies suggest.
The final rule, expected in the spring, would replace a Trump-era regulation that says workers who own their own businesses or have the ability to work for competing companies, such as a driver who works for Uber and Lyft, can be treated as contractors.
The sharp break from the Trump-era standard will likely be the focus of lawsuits challenging the new rule. Federal law requires agencies to adequately...
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