The Biden Labor Department has yet to clarify what approach it will take to determine whether workers qualify as independent contractors or should be employees due full benefits, and business groups see that lull as an opportunity to influence what comes next.
Powerful gig companies like Uber Technologies Inc. and Lyft Inc. are lobbying Washington to provide a more flexible classification standard that will allow them to continue operating their models as is, creating friction with the Biden administration’s agenda and demands of unions closely aligned with the president. Labor groups and some Democrats say these workers should be classified as employees who are owed benefits like minimum wage, overtime, and unemployment insurance under the law.
Many expected the administration to take a stricter approach to independent contractor relationships, but it’s unclear how the administration will proceed after David Weil, a longtime critic of companies’ use of independent contractors, couldn’t win enough votes in the Senate to be confirmed to lead the DOL wage division.
The Biden Wage and Hour Division scrapped a Trump administration rule setting out a business-friendly independent contractor standard. The Coalition for Workforce Innovation and other business groups subsequently sued, and a Texas court reinstated the Trump rule in March. The administration hasn’t appealed the ruling or...
A state announcement comes amid a congressional inquiry into Medicaid fraud but state officials said the cases are not related to federal pressure This premium article is for members. If you are on...