fbpx
Skip to content

Beware Freelancers: Biden Calls for Redefining the Meaning of ‘Self-Employed Worker’

Biden pide redefinir el significado de trabajador autónomo

Leer en Español

The Biden administration on Tuesday proposed redefining what a “self-employed” worker or “independent contractor” is, which could have implications for companies like Uber or Lyft.

The Labor Department in a statement said the goal of the initiative is to ensure that employers do not classify workers who should not be independent contractors as independent contractors, leaving them without a “fair” wage and working hours.

The Labor Department warned that this misclassification occurs in various sectors, such as caregiving, janitorial services, truck driving, home delivery, construction, and hospitality, among others.

Labor Secretary Marty Walsh said independent contractors play an “important role” in the economy, but said the department he leads has seen many cases in which employers misclassify their workers as such, especially those in vulnerable situations.

This practice, he said, deprives workers of federal labor protections, including the right to receive their full, legally earned wages.

In the U.S., companies are required to offer a number of protections to salaried employees such as minimum wage and overtime pay, or contribute to the worker’s social security, which is not the case for contractors.

From now on, a period until November 28 will be open for interested parties to comment on Biden’s proposal.

The new regulation would modify the one put in place by the Trump administration (2017-2021), which made it easier for collaborative economy companies to classify workers as independent contractors.

Last year, Biden’s administration attempted to rescind that regulation, but a court ruled in favor of upholding it.

Leave a Reply

Total
0
Share