The agency must go through a formal process to rescind the rule.
The Department of Labor’s (DOL) Wage and Hour Division announced on May 1 that it will no longer be enforcing a policy from President Biden’s administration that required businesses to reclassify gig workers as employees.
The 2024 policy laid out six economic tests to determine whether a worker could qualify as an independent contractor. The rule made it more difficult for businesses to designate workers as independent contractors, which provided workers with the benefits and overtime that companies are legally required to give employees.
While President Trump’s administration is not enforcing this rule, they cannot fully rescind it without going through the formal process, which could take months or years. During President Trump’s first term, a simplified analysis put greater emphasis on the control workers have over their duties, schedule, and profit and loss potential. Many companies are already subject to stricter state laws regarding the status of their workers.
As the Lord Leads, Pray with Us…
- For President Trump to receive God’s guidance as he and officials in his administration make adjustments to employment rules.
- For Secretary Lori Chavez-DeRemer to be prudent as she heads the Department of Labor.
Sources: JD Supra, Bloomberg Law
