The US Department of Labor under the Trump administration announced plans to repeal a ruling from 2024 that requires a company to treat workers as employees when they are “economically dependent” on the company for work. Opponents say the original rule made it harder to classify workers as independent contractors, forcing companies to spend more on them as employees. Employees, under the federal wage law, are entitled to minimum wage, overtime pay, unemployment insurance and protections – benefits that can cost businesses up to 30% more, according to Reuters.
The original, Biden-era rule, which was in place for only a brief amount of time before it was blocked in Congress by Republicans, was expected to impact industries that rely heavily on contractors, like trucking, delivery services, app-based transportation and the direct selling industry.
The proposal will launch a 60-day period for public comment.
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