Monday, March 11, 2024

A new rule from the federal government meant to protect workers is set to take effect today, March 11.

Labor Department’s (DOL) worker misclassification rule

Snippet of Article: "...The DOL rule is meant to prevent situations where workers are classified as independent contractors – basically, a freelance worker – when they are in fact a traditional employee. A freelancer is, legally speaking, their own business and thus exempted from traditional employment regulations such as overtime and minimum wage. DOL argues that employers frequently misclassify their workers as contractors to get around having abide by these rules.

It’s not clear how many workers feel they are being exploited, however. Many choose freelance work because it offers much more flexibility, allowing them to control the number of hours they work. ...The result is that hiring a contractor becomes legally risky for companies, who therefore will avoid it to the extent that they can. "

Source: cei.org