The Department of Labor on Thursday ended two rules imposed under the Trump administration that reduced federal labor protection for millions of workers.
The two rules both dealt with classifications of employees as employees or independent contractors, a distinction that determines whether an employer should offer benefits, including health care.
In a statement, the agency said it was proposing changes to two rules introduced under the previous administration: the Independent Contractor’s final rule, which was adopted just days before the agency’s approval. President Biden
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“The Wage and Hour division’s mission is to protect and respect the rights of workers. “The lifting of these rules would strengthen the protection of workers, including the vital frontline workers who have done so much during these difficult times,” said a spokesman for the Department of Labor.
“While legal independent contractors are an important part of our economy, the classification of employees as independent contractors denies workers access to critical benefits and protection afforded by the law, ‘they add.’ In addition, removing a standard of collective employment that is unnecessarily tight would protect more workers’ wages and improve their well-being and economic security. ‘
The two proposals for rule change come because the president has come under pressure from the left over the matter; California passed a voting initiative last year that weakened a state law that previously forced stock companies like Uber and Lyft to classify their workers as employees, a major defeat for activists who argued that such companies exploit workers by not benefiting to offer.
Working groups and activists moved earlier this year to challenge the ballot box initiative and call it unconstitutional.
“This unconstitutional law, which has bought gig companies with hundreds of millions of dollars in political expenses, is an insult to the fundamental protection and rights that all employees deserve and must be repealed quickly by the courts,” the head of the California Labor Federation said. . in January.