New Rule From Biden Aministration Puts Independent Contractors On Watch

The Biden administration’s Department of Labor recently enacted a new rule narrowing the definition of an independent contractor, making it more difficult for companies to classify their workers properly.

PJ Media recently reported that the Democratic Party despises independent contractors because they can’t coerce them into doing a specific thing, unlike companies and corporations. Not only that, but it appears that Democrats may have delivered a final blow to independent contractors, also known as “gig workers.”

As many forces target independent contractors, the Biden administration has almost no difficulty finding ways to end them.

It appears that Biden wants to destroy the gig economy because independent workers are “exploited” since they don’t receive health insurance, unemployment benefits or paid holidays, unlike regular employees.

As such, the Biden administration recently enacted a new rule modifying the definition of an independent contractor.

The Dispatch reported that the Biden administration changed the criteria to determine who is an independent contractor under the Federal Labor Standards Act (FLSA) of 1938.

Those favoring the change pointed to the fact that millions of independent contractors will now receive several employee benefits, while those opposed argued that the move would devastate the hiring process and undermine the independent contracting model.

PJ Media noted that former President Donald Trump tried to simplify the definition of an independent contractor, having established five categories to determine whether someone was an independent contractor.

The categories under the Trump administration were narrower than in the past but allowed for a broad interpretation of FLSA. The Biden administration’s rule change makes the identification process difficult.

“A company trying to classify someone as an independent contractor is going to be left wondering which factors the Department of Labor actually cares about,” the vice president of workplace policy at the U.S. Chamber of Commerce, Marc Freedman, told the Dispatch.

“There are an awful lot of people operating as sole proprietors, who, in certain situations, could end up looking like employees,” Freedman added, referencing individuals who have made careers in contract work.

“There’s two small business angles of jeopardy here: One is that you have businesses who [aren’t] going to understand when they’ve classified someone properly, and the other is you have sole proprietors [independent contractors] who are operating as small businesses who may be in jeopardy of being able to maintain their operations,” he continued.