Major app-based platforms including Uber, Lyft and DoorDash expressed confidence that the new rule would not force them to reclassify their gig drivers. But business groups warned the rule creates uncertainty for employers and much depends on how the Labor Department decides to enforce it.
The Labor Department rule, which the administration proposed 15 months ago, replaces a Trump-era standard that narrowed the criteria for classifying employees as contractors. Such workers are not guaranteed minimum wages or benefits, such as health coverage and paid sick days.
Labor advocates have supported the rule, saying employers have exploited lax rules to misclassify workers and avoid properly compensating them. In a report, the left-leaning Economic Policy Institute said construction workers, truck drivers, cleaners, landscapers, security guards and call center workers are among the most commonly misclassified workers. It estimated that misclassified construction workers lose between $10,177 and $16,729 per year.
The rule, while will take effect March 11, directs employers to consider six criteria for determining whether a worker is an employee or a contractor, without predetermining whether one outweighs the other. That’s a change from the Trump-era rule, which prioritized two criteria: how much control a company has over its workers and how much “entrepreneurial opportunity” the work provides.
This story is from the January 13, 2024 edition of Techlife News.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the January 13, 2024 edition of Techlife News.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
US GROWTH SLOWED SHARPLY LAST QUARTER TO 1.6% PACE.REFLECTING AN ECONOMY PRESSURED BY HIGH RATES
The nation’s economy slowed sharply last quarter to a 1.6% annual pace in the face of high-interest rates, but consumers — the main driver of economic growth — kept spending at a solid pace.
ORACLE'S LARRY ELLISON SAYS PLANNED NASHVILLE CAMPUS WILL BE COMPANY'S 'WORLD HEADQUARTERS'
Oracle Corp.’s planned campus in Nashville, Tennessee, will serve as the business software giant’s world headquarters, placing it in a city that’s a center for the U.S. healthcare industry, company Chairman Larry Ellison said.
FTC SENDS $5.6 MILLION IN REFUNDS TO RING CUSTOMERS AS PART OF VIDEO PRIVACY SETTLEMENT
The Federal Trade Commission is sending more than $5.6 million in refunds to consumers as part of a settlement with Amazon-owned Ring, which was charged with failing to protect private video footage from outside access.
AS BIDEN CELEBRATES COMPUTER CHIP FACTORIES VOTERS WAIT FOR THE PROMISED PRODUCTION TO START
President Joe Biden has a great economic story to tell voters a decade from now, less so in 2024.
US ADVANCES REVIEW OF NEVADA LITHIUM MINE AMID CONCERNS OVER ENDANGERED WILDFLOWER
The Biden administration has taken a significant step in its expedited environmental review of what could become the third lithium mine in the U.S., amid anticipated legal challenges from conservationists over the threat they say it poses to an endangered Nevada wildflower.
TENSIONS BETWEEN BEIJING AND WASHINGTON ARE THE BIGGEST WORRY FOR US COMPANIES IN CHINA.REPORT SAYS
Simmering tensions between Beijing and Washington remain the top worry for American companies operating in China, according to a report by the American Chamber of Commerce in China released this week.
MICROSOFT & AMAZON FACE SCRUTINY FROM UK COMPETITION WATCHDOG OVER RECENT AI DEALS
British competition regulators said this week they’ll scrutinize recent artificial intelligence deals by Microsoft and Amazon over concerns that the moves could thwart competition in the AI industry.
OLYMPIC ORGANIZERS UNVEIL STRATEGY FOR USING ARTIFICIAL INTELLIGENCE IN SPORTS
Olympic organizers unveiled their strategy to use artificial intelligence in sports, joining the global rush to capitalize on the rapidly advancing technology.
WHAT YOU NEED TO KNOW ABOUT WRAPPING YOUR CAR
Gaze around the next time you’re stuck in traffic and see if you’re not surprised, maybe even a little saddened, by the monochromatic sea around you.
TIKTOK MAY BE BANNED IN THE US. HERE'S WHAT HAPPENED WHEN INDIA DID IT
The hugely popular Chinese app TikTok may be forced out of the U.S., where a measure to outlaw the video-sharing app has won congressional approval and is on its way to President Biden for his signature.