The Labor Department moved on Thursday to end two rules enacted under the Trump administration that have reduced federal employment protections for millions of workers.
The two rules both related to the classification of workers as employees or independent contractors, a distinction that determines whether an employer is required to provide benefits, including health care.
In a statement, the agency said it is proposing changes to two rules set under the previous governance: the Independent Contractor’s Final Rule, which the agency had passed a few days earlier President Biden
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“The mission of the wages and hours division is to protect and respect workers’ rights. The repeal of these rules would strengthen the protection of workers, including the essential frontline workers who have done so much in these challenging times, ”said a Labor Department spokesperson.
“While legitimate independent contractors are an important part of our economy, the misclassification of workers as independent contractors denies workers access to essential benefits and protections provided by law,” they added. would better protect workers’ wages and improve their welfare and economic security. “
The two proposals for rule change come now that the president has come under pressure from the left on this issue; California passed a voting initiative last year that weakened a state law that previously forced carpool companies such as Uber and Lyft to classify their employees as employees, a major defeat for activists who claimed such companies exploit workers by not providing benefits.
Workers groups and activists took action earlier this year to challenge that voting initiative, calling it unconstitutional.
“This unconstitutional bill, which bought gig companies with hundreds of millions of dollars in political spending, is an affront to the fundamental protections and rights all employees deserve and should be swiftly dropped by the courts,” said the California Labor Federation chief. in January.