Labor Board Retools Crucial Independent Contractor Test (1)

The National Labor Relations Board revamped its legal test for determining whether workers are employees covered by federal labor law or independent contractors who fall outside the law’s protections, bringing back a more employee-friendly framework for one of workplace law’s most critical issues.

The NLRB ruled 3-1 Tuesday to overturn the board’s decision during Donald Trump’s presidency that elevated workers’ “entrepreneurial opportunity” over other factors when classifying them as employees or contractors.

The legal test for employment status is especially relevant for gig companies like Uber Technologies Inc. and Lyft Inc., and other businesses that rely on contract labor to ...