A legal win on an independent contractor rule for Uber Technologies Inc., Lyft Inc. and other gig economy companies may wind up sparking a regulatory defeat, as the Biden administration eyes a new approach.
Judge Marcia Crone of the U.S. District Court for the Eastern District of Texas ruled March 14 that the Department of Labor’s move to rescind a business-friendly Trump-era rule on worker classification violated government rulemaking procedures. Although the decision favored employers, it could spur the agency to develop a new independent contractor rule that cements a more pro-worker standard.
“The district court decision is both surprising and disappointing,” Solicitor of Labor Seema Nanda said in a statement. “When employers misclassify workers as independent contractors, workers lose key rights and protections, hurting labor standards across the board and making it harder for law-abiding employers to compete on an even playing field.”
“The Department is evaluating all legal options, including the potential need for rulemaking,” Nanda said.
The Trump administration rule established a simpler standard for when employers may classify workers as independent contractors who aren’t owed the same overtime and minimum wage protections as full employees under the Fair Labor Standards Act. It was then axed by the Biden administration.
It’s unclear...
President Donald Trump made a series of false claims at his Monday press conference about the war with Iran, during which his remarks strayed into other foreign policy issues. Trump also made mult...