In a huge win, the Department of Labor announced the proposal of a rule that could pave the way for millions of gig workers for companies such as Uber and Lyft to be classified as employees.
In announcing the rule, labor officials rescinded a Donald Trump-era rulethe pool of workers who could be classified as contractors or freelancers; the rule had allowed employers to deny those workers benefits that are required by the federal government, like a guaranteed minimum wage rate, overtime pay, the right to unionize, and more.
“While independent contractors have an important role in our economy, we have seen in many cases that employers misclassify their employees as independent contractors, particularly among our nation’s most vulnerable workers,” Secretary of Labor Marty Walsh said in a statement. “Misclassification deprives workers of their federal labor protections, including their right to be paid their full, legally earned wages.
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