LOS ANGELES—After the incoming Joe Biden administration announced that it would block a new “gig worker” rule proposed by the Donald Trump administration, the United States Labor Department has pushed ahead to get that rule published. The new rule relaxes requirements for defining workers are “independent contractors,” giving greater latitude to employers to hire workers on a “gig” basis.
Incoming administrations may, and often do, block proposed federal rules that have not yet been published in the Federal Register. When Biden spokesperson Jen Psaki announced earlier this week the new administration’s plan to block the “gig worker” rule, it had not been published. But according to a report by Land Line, a news site covering the trucking industry — which relies on truckers who are largely independent contractors — the rule was published in the Thursday, January 7, edition of the Register.
Rules and laws governing independent contract work are also of direct concern to the adult industry, which is dominated by performers and workers who are employed on an independent basis, rather than as actual employees.
The rule sets a new “economic reality” standard for allowing workers to be classified as independent. Under California’s controversial AB5 “gig worker” law, workers must meet a stricter standard, or they must be hired on as employees — an an increased cost to employers.
“The (Labor) Department’s proposal aims to bring clarity and consistency to the determination of who’s an independent contractor under the Fair Labor Standards Act,” Labor Secretary Eugene Scalia said in a statement. “Once finalized, it will make it easier to identify employees covered by the Act, while respecting the decision other workers make to pursue the freedom and entrepreneurialism associated with being an independent contractor.”
But according to Psaki, the Trump administration rule “will make it easier to misclassify employees as independent contractors, costing workers more than $3.7 billion annually.”
The rule would not take effect for another two months after publication, but with the rule now published, whether the Biden administration could easily block its implementation is now unclear. Biden plans to issue a memo blocking that, and several other proposed Trump administration rules, on January 20, the same day that he is inaugurated as president.
Also unclear is whether the federal law will affect California’s AB5. According to the Land Line report, the California Trucking Association is claiming in a current federal court case that federal law takes precedence over the state law.
Photo By Ed Brown / Wikimedia Commons Public Domain
