The Trump administration is finalizing a rule that could designate gig workers as contractors

The US Labor Department has finalized a decision that could make it easier for “gig economy” companies to classify their workers as independent contractors, rather than as employees who can claim legal benefits. The Trump administration released a file The latest version From the base today, it is set to come into effect on March 8, although that may change after President-elect Joe Biden takes office in January.

The Ministry of Labor proposed a New tire Last year for the classification of employees and contractors. that focus on There are two “basic factors” to distinguish between the two: “the nature and degree of control over the business” and “the opportunity to gain or lose” on the basis of initiative and investment. It also lists additional “milestones” that include the “amount of skill required” for the job, the “degree of permanence” of the work relationship, and whether the work is part of an “integrated production unit.”

Such as New York times Indicated Last year, the rule interprets existing regulations rather than creating new ones, and it only covers federal laws mandated by the Department of Labor. States can still set their own definitions – like Prop 22 in California, Which determines Lyft and Uber drivers are not employees. However, it can still broadly influence how companies define their workers. The nonprofit workers’ rights group “National Employment Bill” described this as a “narrowing” of standards rather than a meaningful clarification.