This is sure to be great news for Uber drivers and on-demand delivery staff The U.S. Department of Labor has announced It is defending the Trump administration’s “individual contractor rules” that would have made it easier for employers to classify Jig employees as contractors rather than employees. The move, which took effect in May, means Gig workers can maintain workers’ protection under the Fair Labor Standards Act. These include guaranteed minimum wages and a minimum time-out for overtime, with no protection if you are classified as an individual contractor.
“By repealing the Independent Contractor Rules, we will help protect the rights of essential workers and stop the erosion of workers’ protection once this law is enacted,” said Marty Walsh, the U.S. Secretary of Labor, in a statement. “Owners of legitimate businesses play an important role in our economy, but often workers lose important wages and related protections when they are mis-chained as individual contractors. We are committed to ensuring that employees are clean and properly recognized so that genuine workers are protected by the Fair Labor Standards Act. “
However, defending the Trump-era rules is just the first step. According to ReutersWalsh said he plans to talk with on-demand companies about access to unpaid salaries for their employees, as well as benefits such as sick time and healthcare. For gig workers, this means that they will eventually behave like legitimate workers rather than fairly disposable labor. Given how hard Uber and Lift have fought for Prop 22 in California though, Which has classified their drivers as contractors, employers will probably not easily accept the government’s new demands.
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