David Harrison and Preetika Rana of The Wall Street Journal are reporting that a new Biden administration rule could impose stricter tests for Uber, Lyft, and others to classify workers as contractors. They write:
The Biden administration issued a new rule Tuesday intended to put more contractors on company payrolls, a change that could reverberate across a range of industries, including healthcare, restaurants, construction and transportation.
The rule, which will go into effect in March, would impose a stricter test to determine whether companies can classify their workers as independent contractors. It would replace a 2021 rule implemented by the Trump administration.
The new regulation could affect millions of workers, though affected businesses could consider taking legal action to block the rule. […]
“Pretty soon you’re going to have a test case or multiple cases where a worker says I’m being treated like an independent contractor and I should be treated like an employee,” he said. “I think the ultimate resolution of this is to be determined.”
Read more here.
