The U.S. Department of Labor released a proposal on October 11th that could change the landscape of the gig-worker economy. The proposal addresses the thousands of workers who have been mislabeled as independent contractors rather than employees, which potentially bars them from receiving certain benefits and protections they rightfully deserve.
Allowing companies to misclassify employees as independent contractors promotes wage theft, enables employers to gain unfair advantages over businesses, damages the economy, and allows workers to be denied protections under federal labor standards.
According to the department, misclassifications have historically disadvantaged and harmed custodians, truck drivers, waiters, construction workers, and more.
Under the Fair Labor and Standards Act, the proposed ruling would allow workers and employers to better determine who is an employee and who is an independent contractor.
Learn more about what this update means.
Contact Khanuja Law if you believe you have been misclassified and are rightfully entitled to benefits and protections.