Tag: Fair Labor Standards Act

Nashville-Based Beacon Center of Tennessee Sues the U.S. Department of Labor

Kaitlin Housler

The Nashville-based Beacon Center of Tennessee filed a lawsuit on behalf of two freelance journalists against the U.S. Department of Labor’s Independent Contractor Rule on Wednesday.

The think tank is representing Tennessee freelance journalists Margaret Littman and Jennifer Chesak in the suit, arguing that the department’s updated rule “threatens to destroy the livelihoods of freelancers” by “forcing freelancers into employment relationships that they neither want nor need.”

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Commentary: Labor Department’s New Rule Is Bad News for Independent Contractors

Admin
Contract Worker

In what is sure to have significant implications for millions of American workers, specifically gig economy workers and contractors, the Department of Labor (DOL) issued its long-awaited final worker classification rule in January.

The new rule revises the process to determine whether a worker is an employee or independent contractor under the Fair Labor Standards Act. The government argues the rule is necessary to ensure that all workers are provided fair wages and overtime since independent contractors (people who work for themselves or a business on a contractual basis) are not given the same benefits, such as tax withholdings and paid time off, as traditional employees. However, this argument appears designed to mask the government’s true intention, which is to reduce the number of independent contractors in the country.

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Biden Admin Releases New Labor Rule Cracking Down on Independent Contractors

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Remote Worker

The Department of Labor announced Tuesday the final version of a rule that will force companies to recognize some workers as employees instead of independent contractors.

The new rule goes into effect on March 11 and rescinds a previous rule establishing independent contractors as a separate class of workers under the Fair Labor Standards Act that was put in place in January 2021 under the Trump administration, according to the DOL release. The rule could raise labor costs by up to 30% for employers who utilize independent contractors, such as app-based services like Uber or Lyft, which offer a freelancing model, as employers would have to adhere to minimum wage and overtime laws, according to Reuters.

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