Bloomberg Law
Sept. 23, 2020, 12:21 PM

Independent Contractor Rule Would Give Employers Potent Weapon

Ben Penn
Ben Penn

A new proposal clarifying independent contractor status must first survive numerous legal, political, and calendar hurdles, but if successful the Trump administration would be handing businesses a pivotal advantage in quashing worker lawsuits.

The U.S. Labor Department unveiled the highly anticipated proposed rule Tuesday, adopting a shorter, simpler test for when employers may legally classify workers as independent contractors rather than employees who are covered by federal minimum wage and overtime law.

Attorneys predict the rule, while subject to reversal if Joe Biden wins the presidency and not necessarily owed deference by judges, would deliver companies a persuasive tool to ...

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