Department of Labor Issues New Independent Contractor Rule – Sourcing Journal

“Companies that misclassify independent contractor save up to 30 percent on payroll by eliminating payments into Social Security, Medicare, unemployment insurance, and workers’ compensation, the report said. ‘While legal claims by workers and regulators and pro-active enforcement efforts by government entities and worker advocates have begun to combat independent contractor misclassification, the practice remains pervasive in sectors such as trucking, ride-hail, delivery, building services, logistics, home care, agriculture, and construction.'”

DOL Releases New Independent Contractor Rule – National Law Review

So, going forward, the woman cleaning the floor outside the office of the CEO who says she’s a contractor may be able to build a stronger case that she is actually an employee. Pursuing that claim will require time, money, and legal expertise. Still, the new rule is a step forward for low-wage workers.

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