Uber and Lyft are examples of jobs that make up the "gig economy." | stock photo
Uber and Lyft are examples of jobs that make up the "gig economy." | stock photo
On Jan. 6, the U.S. Department of Labor released a new rule clarifying whether a person is classified as an employee or an independent contractor under the Fair Labor Standards Act, according to the Mackinac Center for Public Policy's website.
“This is a positive move to help safeguard protections for employees while preserving the independence of those working for themselves,” said F. Vincent Vernuccio, senior fellow at the Mackinac Center for Public Policy. “California's experience with AB (Assembly Bill) 5 demonstrates the disastrous impact that restricting independent work has on people’s businesses and livelihoods. Direct attacks on independent contractors and the gig economy as a whole are growing. This rule will protect the firmly rooted American tradition of being your own boss.”
According to the Mackinac Center, the rule will consider the ability for profit or loss as the core factors to determine whether someone is working as an employee or for themselves. It has received support from independent workers.
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