A proposed Department of Labor rule defining whether workers for rideshare, retail and delivery companies are misidentified as independent contractors is expected to be released as early as Tuesday, two sources with knowledge of the matter said. Details of the new rule have not been made public. But the department is expected to model it on legal guidance that says people economically dependent on a company are employees, or go further to expand the pool of workers who should receive benefits, legal experts have said.
The Labor Department has scheduled a news conference at 9:30 am ET on Tuesday with Solicitor of Labor Seema Nanda and Principal Deputy Wage and Hour Administrator Jessica Looman but has not offered any details on what they will discuss. The Labor Department and the White House declined to comment.
The White House's Office of Information and Regulatory Affairs (OIRA) completed a review of the rule on Sept. 29, according to White House records. Tim Taylor, a litigation attorney and partner at Holland & Knight, who had served as deputy solicitor at the Labor Department, said rules typically are cleared in three weeks to a month, but the independent contractor rule was with White House's OIRA for about three months.
He said the lengthy review period at the White House suggests that the rule proposed by the Labor Department is either long and complex or that the White House wanted something different than what the department proposed. "And typically when that...
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