The U.S. Department of Labor is considering a new rule that would narrow the definition of “independent contractor” under federal wage-and-hour law. The Department published a preliminary version of the rule last fall, and it is expected to post a final version this spring. But even though the proposal has been public for months, there is still widespread confusion about how far it would go. For example, in recent comments to the media, former National Labor Relations Board Chairman William Gould IV suggested that the proposal would “preempt” certain state laws, including California’s laws for app-based drivers.
Though he may not know it, Gould is both right and wrong. While the proposed rule would not “preempt” state laws per se, it would interfere with states’ ability to experiment with new work rules. And in that way, it would undermine democratic decision making and bedrock principles of federalism.
To understand the nuance, some background is necessary. When Gould mentioned preemption, he was talking about Proposition 22. Prop 22 was approved by California voters in 2020 by a nearly 6-to-4 margin. The law created a new, comprehensive system for the state’s app-based workers. It guaranteed the workers a minimum hourly rate, offered them new benefits, and required certain safety precautions. It also guaranteed that the workers could continue to operate as independent contractors. That last guarantee was necessary because California has some of the strictest...
Tehran – Saba: The Iranian Foreign Ministry condemned the subversive actions taken by the rulers of Abu Dhabi against the Islamic Republic of Iran. Last night, Tasnim News Agency reported that the...