Reuters
Biz groups say Biden independent contractor rule clashes with federal law
Business groups have told the Biden administration that its proposal to limit U.S. companies’ use of independent contractors is not in line with federal wage law, previewing legal challenges that are likely to come once the rule is finalized. The U.S. Department of Labor received more than 50,000 comments on the October proposal ahead of a Tuesday night deadline, a staggering number that underscores the broad impact the rule will have on industries including the gig economy, trucking and manufacturing. Many labor unions, worker advocacy groups and Democrats support the proposal and submitted comments claiming worker misclassification is rampant in many industries including trucking, delivery, construction and home healthcare and particularly harms low-income immigrant and minority workers.
