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Teams converse out on unbiased contractor rule; Labor Division receives almost 50,000 feedback

December 15, 2022

A proposed new rule by the US Division of Labor overlaying unbiased contractor classification drew heated debate with a number of teams opposing the brand new rule. People and organizations had till Dec. 13 to touch upon the rule, and the Division of Labor obtained 49,734 feedback on the proposed rule.

The new rule, which might rescind a Trump-era rule that has been in place since early 2021, may make it harder to categorise staff as unbiased contractors.

In a assertion on the brand new rule, TechServe Alliance CEO Mark Roberts reasserted TechServe’s assist for the rule in place now, saying it offers extra certainty for classifying IT and engineering unbiased contractors. Nonetheless, Roberts urged the Division of Labor to take steps to ease the affect of the brand new rule if it does go forward with it.

“If the DOL finalizes the proposed 2022 rule, we urge the company to include extra examples of unbiased contractor/worker standing that pertain to information staff, together with however not restricted to IT and engineering consultants who supply their providers as unbiased contractor corporations,” Roberts wrote.

The Coalition for Workforce Innovation, a bunch whose members embody the American Staffing Affiliation and different companies and organizations, additionally opposed the brand new rule, which it known as complicated. It mentioned the brand new rule may disrupt the livelihoods of hundreds of thousands of unbiased professionals.

“Finally, the proposed rule may chill trendy work relationships by enormously decreasing readability for staff and employers,” CWI Chair Evan Armstrong mentioned.

People for Tax Reform too expressed issues over the DOL’s determination to overturn the 2021 unbiased contractor rule. It famous the proposed rule jeopardizes the financial freedom and self-determination of unbiased staff, has the potential to considerably disrupt the labor market and will end result within the lack of employment for many individuals throughout the US.

A number of Republican US senators despatched a letter opposing the brand new rule.

“The unbiased contractor proposed rule would have rapid and long-term disruptive results on hundreds of thousands of staff and 1000’s of companies at a time when the economic system is going through excessive inflation charges,” the senators wrote.

Whereas many have been essential of the brand new rule, some lauded it.

California Lawyer Common Rob Bonta joined a bunch of 17 attorneys common in addition to state and native labor organizations to endorse the regulation in a letter.

“Each employee is entitled to dignity and respect on the job. When staff are misclassified, they lose out on essential helps like time beyond regulation, paid sick depart and unemployment insurance coverage,” Bonta mentioned. “As a substitute of supporting staff throughout the nation, the Trump-era rule threatened their livelihoods. It’s time to rescind and change it. I applaud DOL’s proposal and urge the federal authorities to behave swiftly to assist higher shield staff in California and throughout the nation.”

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