A group of major businesses and associations stepped up its fight against the Biden administration’s impending gig worker protections on Tuesday, arguing in a legal complaint that the federal rule is “unlawful” and will ultimately harm the industry and its workers.
The Department of Labor issued a rule in January that would force companies to treat some workers as employees rather than independent contractors. It’s meant to bolster both legal protections and compensation for millions of gig workers in the U.S. workforce.
The rule is supposed to go in effect March 11, though this legal challenge could cause delays. The U.S. District Court for the Eastern District of Texas will review the complaint. Fast Company reached out to the Department of Labor for comment.
Major business groups have strongly opposed the new rule, arguing that it could lead to burdensome costs and job cuts. Organizations in Tuesday’s amended suit include the Coalition for Workforce Innovation (which includes Uber and Lyft as members), the Associated Builders and Contractors, the Financial Services Institute, the American Trucking Associations, the U.S. Chamber of Commerce, the National Retail Federation, and the National Federation of Independent Business.
“The 2024 Rule fails to address (and will only add to) the confusion over the proper classification of independent contractors, and will irreparably harm not just companies employing independent contractors nationwide, but the workers themselves,” the complaint said.
The Labor Department rule replaces a scrapped Trump-era standard that lowered the bar for classifying employees as contractors. Such workers neither receive federal minimum wage protections nor qualify for employee benefits, such as health coverage and paid sick days.
“Misclassifying employees as independent contractors is a serious issue that deprives workers of basic rights and protections,” said Acting Secretary of Labor Julie Su said in January. “This rule will help protect workers, especially those facing the greatest risk of exploitation, by making sure they are classified properly and that they receive the wages they’ve earned.”
Autentifică-te pentru a adăuga comentarii
Alte posturi din acest grup
Now that the “100 men vs. one gorilla” debate has been settled, a new question is circulati
The rideshare market has reached a crossroads. Autonomous vehicles are on the rise, driver unrest is mounting, and customers are questioning everything from pricing to trust and safety. In the mid
A group backed by tech billionaires spent years and $800 million secretly buying up over 60,
Move aside, Google Maps: Snapchat’s Snap Map has hit a major milestone with 400 million monthly active users.
Launched in 2017, Snap Map began as a GPS-based feature that allowed users t
In April 2024, Yahoo acquired Artifact, a tool that uses AI to recommend news to readers. Yahoo folded Artifact’s—which was cofounded by Instagram cofounders Mike Krieger and Kevin Systrom—into it
It is hard to believe that in 2025, we are still dialing to schedule doctor appointments, get referrals, refill prescriptions, confirm office hours and addresses, and handle many other healthcare
Email: It’s one of the more evil of the necessary evils. We all spend a significant chunk of our days wading through messages, to the point that it can feel like a never-ending task. Save us, arti
