With the midterm elections dominating headlines across Washington, D.C., the Biden administration has unveiled a proposed rule affecting who is considered an employee and who works independently, setting up a battle that could last well into next year.
“While independent contractors have an important role in our economy, we have seen in many cases that employers misclassify their employees as independent contractors, particularly among our nation’s most vulnerable workers,” Secretary of Labor Marty Walsh said in a release when the rule was announced Oct. 11.
Conservatives are sounding the alarm about the effect it could have, and groups like Heritage Action for America are"Regulation almost always helps big businesses who can more easily afford the compliance costs while hurting the small businesses or independent workers who can't afford to comply," said Jessica Anderson, executive director of Heritage Action.
"This sort of lawbreaking puts companies that respect their workers and the law at a competitive disadvantage," said Karla Walter, senior director of employment policy at the Center for American Progress.
Regardless of how the rule is worded, it won't have an enormous impact either way, argues Dan Bowling, who teaches labor and employment courses at Duke University.
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