The saga continues for companies that rely on a gig economy business model as the federal government just challenged a court order that recently restored a Trump-era rule that makes it easier to classify workers as independent contractors. On May 13, the Department of Labor (DOL) filed a notice of appeal with the federal district court in Texas that reinstated the rule. In 2021, the Biden administration first delayed then ultimately withdrew the rule. But the DOL failed to give the public a meaningful opportunity to comment on its decision to delay the Trump administration’s rule or consider possible alternatives before rescinding it, according to the district court’s March 14 order. For now, the Trump-era rule remains in effect – but that could change at the drop of a hat as the lawsuit works its way through the courts. What do you need to know as the litigation plays out?
Business Groups Support ‘Economic Realities’ Test
Two competing schools of thought have emerged about the proper legal standard to determine whether workers are independent contractors or employees. The Trump administration’s rule looks to the “economic reality” of each workplace relationship by weighing five simple factors and determining whether the worker is in business for themselves (and thus a contractor) or economically dependent on the hiring entity (and thus an employee):
A wave of pro-whistleblower opinions from federal judges suggests the False Claims Act remains on solid ground despite pointed questions from leading conservative judicial voices. Whistleblowers, ...