The U.S. Department of Labor unveiled a proposal that would make it harder for companies to treat workers as independent contractors, potentially upending the gig economy and other industries that rely heavily on contract labor.
- The U.S. Department of Labor on Tuesday unveiled a proposal that would make it harder for companies to treat workers as independent contractors, potentially upending the gig economy and other industries that rely heavily on contract labor.
Worker advocates have said that millions of workers are misclassified as independent contractors and deprived of fair wages, benefits, and basic protections against discrimination and retaliation. Business groups have maintained that independent contracting helps to create jobs and gives workers more flexibility and opportunities to operate their own businesses.
Limiting independent contracting would also have an outsized impact on trucking companies that rely on contractors who own their trucks to meet fluctuations in demand and avoid the costs of maintaining fleets of trucks. Trucking firms raising prices or limiting services could, in turn, place further strain on supply chains that have already been hobbled by the COVID-19 pandemic.
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